Corporate tax

Corporate tax refers to a tax levied by various jurisdictions on the profits made by companies or associations. Public finance is a field of economics concerned with paying for collective or governmental activities and with the administration and design of those activities The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated Payroll tax generally refers to two kinds of taxes: Taxes which Employers are required to withhold from Employees Pay, also known as Withholding A capital gains tax (abbreviated CGT) is a Tax charged on Capital gains the profit realized on the sale of a non-inventory Asset that was purchased Stamp duty is a form of Tax that is levied on documents Historically a physical stamp (a Tax stamp) had to be attached to or impressed upon the document to denote Land value taxation (LVT (or site value taxation) is an Ad valorem tax where only the value of land itself is taxed A sales tax is a Consumption tax charged at the Point of purchase for certain goods and services Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. A flat tax (short for flat rate tax is a Tax system with a constant tax rate The tax tariff and trade laws of a political region State or Trade bloc determine which forms of consumption and production tend to be encouraged A tax haven is a place where certain Taxes are levied at a low rate or not at all In Economics, tax incidence is the analysis of the effect of a particular Tax on the distribution of economic welfare. In a Tax system and in Economics, the tax rate describes the burden Ratio (usually expressed as a Percentage) at which a business or person is A proportional tax is a Tax imposed so that the Tax rate is fixed as the amount subject to taxation increases A progressive tax is a Tax imposed so that the Tax rate increases as the amount subject to taxation increases A regressive tax is a Tax imposed in such a manner that the Tax rate decreases as the amount subject to taxation increases Tax advantage refers to the economic bonus which applies to certain accounts or Investments that are by Statute, tax-reduced tax-deferred or tax-free Personal income taxes See also Income tax in Australia Only the federal government imposes income taxes on individuals and this is the most significant source of Taxation in the British Virgin Islands is relatively simple by comparative standards photocopies of all of the tax laws of the British Virgin Islands would together amount to about 200 The level of Taxation in Canada is average among Organisation for Economic Co-operation and Development (OECD countries Taxes provide the most important revenue source for the Government of the People's Republic of China. See Government of Colombia for a wider perspective of Colombian government See Government of France for a wider perspective of French government Taxes in Germany —being a Federal Republic —are levied by the federation ( Bund) the States ( Länder) as well as the HK Inland Revenue Ordinance Cap112 is one of Hong Kong's Ordinances Taxes in India are levied by the Central Government and the State Governments This article ls with Taxation in Indonesia or pajak. Definitions "Pajak" in Indonesian for Tax and taxes whereas " Perpajakan The system of Taxation in Ireland is broadly similar to the system of Taxation in the United Kingdom. The Netherlands has a rich history dealing with taxation predating the Romanic period. Taxation in New Zealand is collected at a national level by the Inland Revenue Department (IRD on behalf of the Government of New Zealand. The Income tax in Peru is collected by the Superintendencia Nacional de Administración Tributaria, best known as SUNAT. The Russian Tax Code is the primary tax law for the Russian Federation. Individual income tax in Singapore forms part of two main sources of Income tax, the other being Corporate taxes on companies In Tanzania the Income Tax Act 2004 came into effect in July 2004 Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. Comparison of Tax Rates around the world is a difficult and somewhat subjective enterprise This table lists countries by total 2005 Tax revenues (federal state and local as a percentage of GDP (Gross Domestic Product Economic policy refers to the actions that Governments take in the economic field. Monetary policy is the process by which the Government, Central bank, or monetary authority of a country controls (i the Supply of Money, A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states In Economics, money supply, or money stock, is the total amount of money available in an Economy at a particular point in time The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set fixed quantities of Gold Fiscal policy, taking the scope of Budgetary policy, refers to government policy that attempts to influence the direction of the economy through changes in government taxes Government spending or government expenditure is classified by economists into three main types A budget deficit occurs when an Entity (often a Government) spends more Money than it takes in Government debt (also known as public debt or national debt) is Money (or credit) owed by any level of government either Central government Trade is the willing exchange of goods, services, or both Trade is also called Commerce. For other uses of this word see Tariff (disambiguation. A tariff is a tax imposed on goods when they are moved across a political boundary A trade pact is a wide ranging Tax tariff and trade pact that often includes Investment guarantees The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated In Economics, a financial market is a mechanism that allows people to easily buy and sell ( Trade) financial Securities (such as stocks and bonds There are two basic financial market participant categories Investor vs Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Personal finance is the application of the principles of Finance to the monetary decisions of an individual or family unit Public finance is a field of economics concerned with paying for collective or governmental activities and with the administration and design of those activities Financial regulations are a form of Regulation or supervision which subjects Financial institutions to certain requirements restrictions and guidelines aiming to A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money Fractional-reserve banking is the banking practice in which Banks keep only a fraction of the value of their Bank notes and demand deposits in reserve Full-reserve banking is the Banking practice in which the full amount of each depositor's funds are available in reserve at the bank when each depositor Free banking is a theory of Banking in which commercial banks and market forces control the provision of banking services Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law ( Sharia) principles and guided by Islamic economics Generally a company is a form of Business organization. The precise definition varies A voluntary association or union (also sometimes called a voluntary organization, unincorporated association, or just an association) is a group

1 Tax base
2 Company shareholder taxation
3 Tax rates
4 See also
5 References
6 External links

Tax base

The measure of taxable profits varies from country to country. In some countries, for example the United States, the taxable profits are calculated according to a quite different set of rules from those used in the calculation of profits in the financial statements. Corporate tax in the United States is imposed both by the federal government and by most state governments Financial statements (or financial reports) are formal records of a business' financial The amounts that can be deducted for capital expenditure and for interest payments vary substantially from country to country. Capital expenditures (CAPEX or capex are expenditures creating future benefits

In many countries, depreciation of capital assets calculated in the financial statements ("book depreciation") is not deductible, and a deduction is given for tax depreciation calculated on a different basis. Depreciation is a term used in Accounting, Economics and Finance to spread the cost of an Asset over the span of several years In the United States, tax depreciation is generally calculated by a method known as MACRS. The Modified Accelerated Cost Recovery System (MACRS is the current method of accelerated Asset Depreciation required by the United States income tax code In the United Kingdom, where the main corporate tax is called corporation tax, tax depreciation, known as "capital allowances", is allowed instead of book depreciation, usually at the rate of 25% per annum on a reducing balance basis. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located Throughout this article the unqualified term "pound" and the £ symbol refer to the United Kingdom pound. In France depreciation is allowable, within certain rates per classes of asset set down by statute. This article is about the country For a topic outline on this subject see List of basic France topics.

Company shareholder taxation

See also: Dividend tax

An issue in corporate taxation is the taxation of shareholders who receive dividends or distributions from a company out of profits which have already been taxed. A dividend tax is an Income tax on dividend payments to the Stockholders (shareholders of a company This contrasts with a partnership or sole proprietorship, where the owner of the business is usually taxed only on the profits of the business and not on distributions of profits. For partnership in cricket terminology see List of cricket terms A partnership is a type of Business entity in which partners A sole proprietorship, or simply proprietorship ( Benjamen Clark Different solutions are adopted for this problem:

The company may not be taxed, and instead the shareholders are taxed on the profits of the business, not on distributions. This method is adopted by the United States, but only for companies owned by a small number of shareholders, so-called S corporations. An S corporation or S-corp, for United States federal income tax purposes is a Corporation that makes a valid election to be taxed under Subchapter S of
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. Dividend imputation is a Corporate tax system in which some or all of the tax paid by a company may be attributed (or "imputed" to the shareholders by way of The term tax credit describes two different concepts The first is a recognition of partial payment already made towards Taxes due. Australia and New Zealand have imputation systems. For a topic outline on this subject see List of basic Australia topics. New Zealand is an Island country in the south-western Pacific Ocean comprising two main landmasses (the North Island and the South Island From 1973 to 1999, the UK operated a partial imputation system, with shareholders able to claim a tax credit reflecting advance corporation tax (ACT) paid by a company when a distribution was made. Year 1973 ( MCMLXXIII) was a Common year starting on Monday (link will display full calendar of the 1973 Gregorian calendar. Year 1999 ( MCMXCIX) was a Common year starting on Friday (link will display full 1999 Gregorian calendar) Advance corporation tax (ACT was the scheme under which companies made an advance payment of corporation tax when they distributed Dividend payments to shareholders A company could set off ACT against the company's annual corporation tax liability.
Distributions such as dividends may be fully or partially exempt from tax. Dividends are payments made by a Corporation to its Shareholder members
- Austria and Germany operate a "double income" system on distributions, where only half the distribution is subject to tax, or, equivalently, the tax rate is halved. Austria (Österreich ( officially the Republic of Austria (Republik Österreich Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe.
- The Netherlands operates a participation exemption under which certain distributions are exempt from tax. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands Participation exemption is a general term relating to an exemption from Taxation for a Shareholder in a Company on Dividends received and potential
- In Canada, dividends taxable in the hands of eligible shareholders may qualify for a dividend tax credit to compensate for taxes already paid by the corporation. Income taxes in Canada constitute the majority of the annual revenues of the Government of Canada, and of the governments of the Provinces of Canada.
- In the United States, dividend income from C corporations (companies which are not S corporations) is generally taxed at a lower rate than other income. A C corporation (or C corp) is a Corporation in the United States that for Federal income tax purposes, is Taxed under and Subchapter C ( et

If none of these methods is used, a form of double taxation results. Double taxation is the imposition of two or more Taxes on the same income (in the case of income taxes) Asset (in the case of capital taxes)

Tax rates

Tax rates around the world vary considerably both in their statutory rates, and in their effective rates after all offsets are considered, preventing any straightforward comparisons of tax rates between countries. Comparison of Tax Rates around the world is a difficult and somewhat subjective enterprise In a Tax system and in Economics, the tax rate describes the burden Ratio (usually expressed as a Percentage) at which a business or person is In a Tax system and in Economics, the tax rate describes the burden Ratio (usually expressed as a Percentage) at which a business or person is In some countries, for example, the United States, Canada and Switzerland, subnational governments also collect taxes, which further complicates the calculation of the tax rate. Switzerland (English pronunciation; Schweiz Swiss German: Schwyz or Schwiiz Suisse Svizzera Svizra officially the Swiss Confederation

In the United States, the top marginal federal corporate rate for income over $18. In a Tax system and in Economics, the tax rate describes the burden Ratio (usually expressed as a Percentage) at which a business or person is 3 million is 35% (it can be as low as 15% for income under $50,000). Most states also tax companies, but the state tax is a deductible expense in calculating federal tax, so the overall tax rate is not simply the sum of the two tax rates.

Detailed data is available for the world's most developed economies, i. e. those in the Organisation for Economic Co-operation and Development.

References

Bulgaria, new corporate tax

External links

Corporate welfare is a term describing a government's bestowal of money grants tax breaks, or other special favorable treatment on Corporations or select corporations An excess profits tax is a tax on any Profit above a certain amount Throughout this article the unqualified term "pound" and the £ symbol refer to the United Kingdom pound. United Kingdom corporation tax loss relief rules are complex United Kingdom corporation tax charges income and gains that fall within certain headings all of which are Corporation Tax is a Tax in Ireland. This tax is charged on the company’s profits which include both income and chargeable gains Corporate tax in the United States is imposed both by the federal government and by most state governments

Dictionary

-noun

(economics) A tax levied on a corporation, especially on its profits; corporation tax

© 2009 citizendia.org; parts available under the terms of GNU Free Documentation License, from http://en.wikipedia.org
network: | |

Contents