Home > Corporation tax
Corporation tax is a direct tax on the profits made by companies or associations. As a general principle, though this varies substantially between jurisdictions, allowances for capital expenditure and interest payments can be deducted from gross profits when working out the tax liability. Profits which have been reinvested may not be taxed.For example, in the United Kingdom, depreciation on virtually all capital assets (excluding finance leases and certain intangible assets) is disallowable in computing taxable profits. Instead, capital allowances (usually at the rate of 25% per annum on a reducing balance basis) may be claimed. In France, however, depreciation is allowable, within certain rates per classes of asset set down by statute.
A feature of a classical tax system which includes corporate taxation is double taxation, in that profits made by a company are subject to corporation tax, but further tax (usually income tax) is payable by the company's shareholders when the same profits are distributed by way of a dividend.
However, under an imputation tax system , some or all of the tax paid by the company may be attributed pro rata to the shareholders by way of a tax credit to reduce the income tax payable on a distribution. For many years, from 1973 to 19971997 was a common year starting on Wednesday (see link for calendar), and was designated the International Year of the Reef''. Events January January 3 NBC's Today Show Bryant Gumbel signs off for the last time January 8 Mister Rogers receives a star on t, the UK operated a partial imputation system, with shareholders being able to claim a tax credit reflecting advance corporation tax (ACT) paid by a company when a distribution was made. A company could set ACT off against the annual corporation tax liability of the company
Alternatively, in certain jurisdictions, distributions are be fully or partially exempt from tax—for example, certain jurisdictions, such as AustriaAustria is a landlocked country in Central Europe, a federation of nine states. Austria is bordered by Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the and GermanyThe Federal Republic of Germany ( German: Bundesrepublik Deutschland is one of the world's leading industrialized countries, located in the middle of the European Union. It is bordered to the north by the North Sea, Denmark and the Baltic Sea, to the east, operate a "double income" system on distributions, with only half of the distribution is subject to tax, or, equivaletly, the tax rate is halved, and the NetherlandsDutch redirects here. For other uses, see Dutch (disambiguation). The Netherlands ( Dutch: Nederland is the European part of the Kingdom of the Netherlands, a constitutional monarchy. It is located in northwestern Europe and borders the North Sea, Belgium operates a participation exemption under which certain distributions are exempt from tax.
See also
- Corporate welfareCorporate welfare is a pejorative term first coined by Ralph Nader in 1956 to describe a government's bestowal of grants and/or tax breaks on one or more corporations or other "special favorable treatment" from the government. Usually these actions are se
Tax
BusinessHistorically, the term business referred to activities or interests. By extension the word became (as recently as the 18th century) synonymous with an individual commercial enterprise. It has also taken on the more general meaning of a nexus of commercial
