| The tax relief programs for businesses are in several | | | | Dividends and Capital Gains |
| categories: income, death tax, dividends and capital | | | | Double income taxation occurs when the same |
| gains, plus incentives for business growth. | | | | income is taxed at different levels. When the business |
| Income Tax | | | | generates income, it is taxed as income is tax. |
| Tax relief on business incomes was granted when the | | | | However, when the same income is given to the |
| government expanded the list of items falling under the | | | | business owners, it is taxed again as capital gains tax. |
| lower tax brackets - 10% and 15% - enabling many | | | | Recent programs, however, have changed this |
| businesses to file for lower taxes under the program. | | | | situation and double taxation is minimized. |
| Other categories were also reduced, so that the | | | | Additional Incentives |
| maximum tax imposed is only 35%. Monies intended | | | | One aspect in which a business incentive program has |
| for the tax can now be used for financing the | | | | been applied is on asset depreciation. Business taxes |
| business, adding capital or purchasing new equipment. | | | | are usually partially based on assets or properties. |
| The Death Tax | | | | Nevertheless, it is accepted that business assets |
| Similar to the estate tax, the 'death tax' is imposed | | | | decline in value faster than those owned individually, |
| when the business owner relinquishes his management | | | | therefore, to equalize the depreciation rates of both |
| of the business and hold on its assets to another | | | | may be unfair to business. Thus, recent tax relief |
| member of the family or someone else. The death tax | | | | programs adjusted the rates, making business asset |
| has been nullified and will not be re-imposed until 2011, if | | | | depreciation rates higher and the time period shorter |
| at all. | | | | than before. |