The government introduced a consolidated tax system Monday to help promote corporate restructuring, especially by making it easier to establish holding companies and spin off loss-making divisions.
Under the consolidated system, taxes are calculated based on the combined profits or losses made by a group. Hence, losses from one company can be set against the profits of another group company for tax purposes, reducing the burden on the group as a whole.
Consolidated taxation is already in place in many countries where business circles insist it is vital for restructuring, especially when establishing holding companies and spinning off unprofitable divisions.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.