In cases where the company has both concessionary income and normal income, the Corporate Income Tax Rebate will be computed based on the aggregate gross tax payable of both concessionary and normal income. The SME cash grant will be computed based on the aggregate revenue i.e. Box 35 of Form C.
Please see the following illustration.
Chargeable Income @10% = $100,000
Chargeable Income @17% after exempt amount = $500,000
Gross tax payable = $95,000 ($100,000x10% + $500,000x17%)
Corporate Income Tax Rebate = $10,000* (20%x$95,000 = $19,000, so rebate is capped at $10,000)
Net tax payable = $85,000 ($95,000 - $10,000)
Revenue as declared in Form C (i.e. Box 35) = $4,000,000
SME cash grant =$5,000 (5%x$4,000,000 = $200,000, so grant is capped at $5,000)
*Corporate Income Tax Rebate is given as it is higher than the SME cash grant