Corporate Tax
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Questions Asked : What is the significance of Corporate tax and what information about this topic is available online? - Some answers may be found here as well as suggestions for locating additional info on Corporate tax:
General Overview :: Corporate Tax
Corporate tax or company Tax refers to a tax imposed on entities that are taxed at the entity level in a particular jurisdiction. Such taxes may include income or other taxes. The tax systems of most countries impose an Income tax at the entity level on certain type of entities . Many systems additionally tax owners or members of those entities on Dividends or other distributions by the entity to the members. The tax generally is imposed on net Taxable income. Net Taxable income for Corporate tax is generally financial statement income with modifications, and may be defined in great detail within the system. The rate of tax varies by jurisdiction. The tax may have an alternative base, such as assets, payroll, or income computed in an alternative manner. Most income tax systems provide that certain types of corporate events are not taxable transactions. These generally include events related to formation or reorganization of the Corporation. In addition, most systems provide specific rules for Taxation of the entity and or its members upon winding up or dissolution of the entity. In systems where financing costs are allowed as reductions of the tax base , rules may apply that differentiate between classes of member-provided financing. In such systems, items characterized as Interest may be deductible, subject to interest limitations, while items characterized as dividends are not. Some systems limit deductions based on simple formulas, such as a debt-to-equity ratio, while other systems have more complex rules.
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