The Tax Reform introduces an optional income tax computation for self-employed individuals and corporations whom gross income is generated substantially from services. In addition, all the gross income must have been included in an informative return and subject to withholding tax.
The tax rates of the optional tax are as follows for corporations and individuals:
| Gross income | Tax rate on gross income |
|---|---|
| From $1 to $100,000 | 6% |
| From $100,001 to $200,000 | 10% |
| From $200,001 to $300,000 | 13% |
| From $300,001 to $400,000 | 15% |
| From $400,001 to $500,000 | 17% |
| More than $500,000 | 20% |
