Work out minimum alternate tax instantly with clear inputs, formula shown and shareable results.
Minimum alternate tax stops profitable companies paying nothing through incentives and accelerated allowances. The company pays the higher of normal tax and the minimum, and the excess becomes a credit usable in later years when normal tax is higher.
Minimum alternate tax
Payable = max(book profit × MAT rate, normal tax); credit = MAT - normal tax
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Typically up to fifteen years, and only against the excess of normal tax over the minimum in those years.
Many regimes exempt them, since the concessional rate already comes with incentives withdrawn.