Lump-sum tax: interest on business-related accounts and compensation for damage to business-related assets

Two revenue categories under lump-sum tax

This guide covers only two categories of non-sales revenue listed by the Ministry of Finance in its “Rates and limits” overview. It is neither a guide to keeping records for multiple tax rates nor an assessment of the taxation of a particular payment.

Interest on funds in business-related accounts — 3%

The Ministry of Finance lists a 3% lump-sum tax rate for revenue from interest on funds held in bank accounts maintained in connection with the business activity carried on.

The entire description matters: the interest must be on funds held in bank accounts, and those accounts must be maintained in connection with the business activity carried on. Do not extend this statement to all interest.

Compensation received for damage to business-related assets — 8.5%

The Ministry of Finance lists an 8.5% lump-sum tax rate for revenue from compensation received for damage to assets connected with business activity.

Retain every element of this description: compensation received, damage to an asset, and that asset’s connection with business activity. Do not treat this statement as a rule covering every compensation payment or every insurance benefit.

Both rates and category descriptions come from the Ministry of Finance overview. Do not automatically assume that the rate applied to your main sales also applies to the receipts discussed here.

What you can gather for organizational purposes

To organize your information, you may voluntarily prepare:

• a bank statement showing the interest, together with information describing the account’s connection with the business activity carried on;
• documents describing the basis for the compensation received, the damage and the asset concerned, and that asset’s connection with business activity.

This is an organizational recommendation, not a list of legally required documents or confirmation that gathering them determines how the payment is taxed.

Limits of this guide

Use this text as an overview of two narrowly defined categories. This guide does not determine all the conditions governing the taxation of an individual payment and does not guarantee that a particular tax settlement is correct.