What is a Corporate Tax?

Corporate income tax refers to a type of income tax that is levied on the income from production and operation and other income obtained by a company or a legal person. Many countries in the world list corporate income as the subject of income tax and call this income tax corporate income tax. The company is established in accordance with company regulations, and the entire capital is funded by shareholders and constituted as a legal entity for the purpose of profit. The enterprises include unincorporated enterprises (solely-owned enterprises, partnership enterprises) and corporate enterprises (companies). China implements corporate income tax, and the scope of taxpayers is larger than corporate income tax.

Corporate income tax

Corporate income tax refers to a type of income tax that is levied on the income from production and operation and other income obtained by a company or a legal person. Many countries in the world list corporate income as the subject of income tax and call this income tax corporate income tax. The company is established in accordance with company regulations, and the entire capital is funded by shareholders and constituted as a legal entity for the purpose of profit. The enterprises include unincorporated enterprises (solely-owned enterprises, partnership enterprises) and corporate enterprises (companies). China implements corporate income tax, and the scope of taxpayers is larger than corporate income tax.

Chinese name

Corporate income tax is calculated on an annual basis, but in order to ensure timely and balanced receipt of taxes, corporate income tax is paid in installments (monthly or quarterly) in advance, and the year-end settlement and settlement are adopted. When a taxpayer pays income tax in advance, he should pay in advance according to the actual amount of the tax period. If it is difficult to pay in advance according to the actual amount, he can pay 1/12 or 1/4 of the taxable income of the previous year, or be approved by the local tax authority. Other methods of prepayment of income tax in installments. Once the prepayment method is determined, it cannot be changed at will.

What China implements is

In the UK, corporate income tax refers to corporate tax or corporate tax, which was officially levied in 1965, thus ending the history of levying income tax and profit tax on companies as unincorporated business.

During World War I, in order to meet the country's need to raise funds for war, the British government began to separate companies as

Corporate income tax is a tax levied on income earned by companies in Korea.

Corporate income tax is a tax levied on corporate income in India.

Corporate income taxpayer

Taxpayers of corporate income tax are resident companies and non-resident companies. A resident company is an Indian company or a company whose control or management center is in India during the tax year.

Corporate income tax rate

Resident companies pay taxes on income derived from around the world; non-resident companies pay taxes on income derived from India.

The corporate income tax rate for 2002 was 35.7% (including 2% surcharge).

Capital gains are taxed in accordance with the following rules: gains realized by transfer within 3 years (one year for stocks) are short-term gains and taxed at the applicable tax rate on operating income; long-term capital gains are calculated at the acquisition cost adjusted by the inflation index 20.4% tax rate (20% plus 2% surcharge) (20% for foreign companies). For the long-term gains of securities listed in India, taxpayers can choose to pay taxes in the above-mentioned way, or they can choose to apply a tax rate of 10.2% (10% for foreign companies) without adjusting for inflation. Capital losses can only be offset against capital gains for the current year or for the next 8 years. Gains realized on depreciable assets are taxed as short-term profits based on normal operating income.

Corporate income tax calculation

Depreciation

The fixed assets owned and used by taxpayers for business activities are allowed to deduct normal depreciation. These assets are divided into buildings, furniture and installations, machinery and equipment, and ships. After asset classification, buildings are depreciated at a depreciation rate of 5%-20%, furniture and equipment are depreciated at a depreciation rate of 10%-15%, machinery and equipment are depreciated at a depreciation rate of 20%-100%, and ships are depreciated at a depreciation rate of 20%-100%. 10% 20% depreciation rate, intangible assets depreciation rate is 25%.

, loss carry forward

Under certain conditions, the losses incurred by taxpayers in operating activities are allowed to be carried forward for 8 years to offset the income from this operating activity and other operating activities, provided that the operating activities with reasonable losses are still in the deduction period. get on. If the operating loss is caused by undrawn depreciation, it is allowed to carry forward indefinitely and offset any income, provided that the income is offset in the year.

(3) Related party transactions

For related party transactions, if the transaction price is deemed too high or unreasonable, the tax authorities may not fully or partially recognize it.

Merger of income

Except for specific circumstances, each taxpayer's income shall be calculated and classified separately, and the total income calculated from this shall be taxed at the applicable tax rate (except for capital gains). When calculating the taxable amount, the company is not allowed to combine the income of the company with the income of its subsidiaries or other companies.

Tax year

From April 1 (from the date of opening of a new business) to March 31 of the following year.

Tax declaration

The Indian corporate income tax is subject to tax declaration. Taxpayers submit tax returns before the prescribed date. After the tax authorities' pre-determination and formal verification, the taxpayer completes the tax payment according to the verification notice. ^[2]