Tax Advisory

Does the technopark exemption also cover profit distribution?

It does not. The exemption operates at the corporate tax level: earnings from software, design and R&D activity carried out in the zone leave the corporate tax base. When those earnings are distributed to a shareholder, withholding is applied on the dividend. Earnings being exempt from corporate tax does not make the distribution tax-free.

Read the full article: Distributing Profit From a Technopark Company With Foreign Shareholders: What Happens to Exempt Earnings →