Half-income method

From 2001 and 2002, the half-income method will take the place of the corporation tax credit method that was in effect until then. According to the half-income method, only half of the profit distributions (dividends) are recorded as taxable income for their recipient. The other half of the profit distributions remain tax-free for the recipient of the distributions. At the same time, only half of the business expenses or business expenses are allowed to be deducted. The half-income method also applies to the sale of shares in corporations. Only half of the profit (surplus) arising from the purchase and sale of shares in corporations is taxed here.

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