Corporate Tax


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Corporate Tax

A tax levied on corporations' profits. Because corporations are legal entities separate from their owners, they may be taxed as if they were persons. A corporate tax, then, is the equivalent of the income tax for natural persons. Corporate taxes vary from country to country; in the United States, they are levied at both the federal and state levels. Proponents of the corporate tax argue it guards against excessive profits that may result from unethical or illegal corporate practices, while opponents say that corporations simply pass on the tax to their customers.
References in periodicals archive ?
As Suarez Serrato pointed out in the IBT interview, the study also highlighted the gulf between statutory and effective corporate tax rates.
The MOF has not yet revealed details of the proposed corporate tax or VAT rates, or the extent of their coverage.
John Foskett (left), new director at Grant Thornton in Birmingham, with David Hillan, head of corporate tax |
A comparison was conducted of the order of the EU countries according to the maximum statutory corporate tax rate and the effective corporate tax rates in 1995 and 2011.
Japan's corporate tax rate will change into one that promotes (economic) growth," Abe told reporters, adding that he hoped the lower burden on companies would lead to job creation and an improvement also for private citizens.
It's a framework that lowers the corporate tax rate and broadens the tax base in order to increase competitiveness for companies across the nation," Obama said in a statement.
Under the system, corporate tax paid by a multi-national would be paid proportionally to a number of countries, depending on its level of business in each.
Economists have studied and debated state corporate tax rates for years, and their effects are complex and hard to gauge, particularly when it comes to determining who ultimately pays - employees, shareholders or the public.
Many of the corporate tax trends seen elsewhere in the world are not necessarily applicable in the Gulf, where we are seeing tax rates continue to fall," said KPMG's head of International Tax for the Middle East & South Asia Region Philip Marwood.
As for corporate tax revenues, as of the end of April, the accumulated amount dropped 22.
Some policymakers may consider raising corporate tax rates because it avoids directly taxing workers who are already suffering the effects of this recession.
a high statutory corporate tax rate and narrow corporate tax base.

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