Corporate - Branch income

Last reviewed - 17 January 2021

Branches of foreign corporations are subject to CIT on locally earned profits only. Branch profits remitted to the foreign head office are subject to an additional tax at the rate of 10%. However, this is a tax on the disposition of profits abroad and is not limited to remittances. For example, a credit of profit to the head office account in the books is held to be a disposition of profit abroad even though no remittance of funds takes place.