The income tax rate for corporations is 25% and is based on territorial income with some exceptions. Therefore, income earned outside the country is considered foreign-sourced and is not subject to tax. If the company does not generate taxable profits, it must pay taxes under the minimum IRAE system, according to Article 93 of the Income Tax Law on Economic Activities (IRAE), which establishes that taxes must be paid based on the previous year's income, on a scale ranging from approximately USD 150 to USD 380 per month. Additionally, tax losses can be offset within 5 years following their generation.
