Business World

What is Corporate Tax

Corporate taxes are levies placed on the profits of any business or profit-making organization. The amount of tax depends on the amount of profits as well as the rates used to determine the tax rate in individual countries. In some parts of the world, particularly in the United States, individual share-holders are taxed on the profits made in the business. However, distributions of the profits are not taxed.

In other areas, the imputation tax system applies, where either part or all of the tax may be attributed to the company so as to reduce the amount payable on distribution. Still, distributions may be fully exempt form tax or partially taxed.

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