GNA Demands Public Holding Companies Pay 40% Profit Tax

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Faraj Boumtari, the Minister of Finance in the Government of National Accord (GNA), called on public holding companies to contribute 40% of their profits to support the state treasury.

In a statement, the MoF stated that the claim comes as a basis for Law No. 24 of 2016, which stipulates that public holding companies pay and contribute the equivalent of 40% of their profits to support the state’s general budget. The law also stipulates that those companies pay the equivalent of 50% of their retained earnings a single time to settle benefits of the previous years.

The decision indicates that if the consolidated financial statements cannot be prepared for holding companies, the same proportions shall be returned to the individual subsidiaries.

The Ministry also demanded cooperation with the work teams charged with collecting the funds.