Question

What is the subject of Corporate Tax? Who has to pay corporate tax? Please provide detailed information.

Answer 1

Corporate tax is a tax that is imposed on the net income of a company it is applicable for both public as well as private companies which are registered under the act.A country's corporate tax is mainly applicable to corporations incorporated in that particular country,or corporations doing business in a particular country and income from that particular country ,any foreign establishments who have a permanent establishment in a country  and corporations deemed to be resident for tax purpose in that country.A companies income that is determined for tax payable is calculated as such in the case of individual tax payers,additional rules are applicable under certain double tax arrangements to prevent a company from being treated as resident in two different countries.This is the case for public and private companies but partnership are not subject to corporate tax ,corporate tax covers both body corporate and unincorporated associations subject to certain exemptions.The main and foremost objective of corporate tax planning is to reduce tax liability and increase profitability by determining efficient tax structure.Therefore companies are advised to plan corporate tax so that they can reduce tax exposure and maximise available reliefs on acquisitions.