Corporate Tax

AAA

DEFINITION of 'Corporate Tax'

A levy placed on the profit of a firm, with different rates used for different levels of profits. Corporate taxes are taxes against profits earned by businesses during a given taxable period; they are generally applied to companies' operating earnings, after expenses such as COGS, SG&A and depreciation have been deducted from revenues.

INVESTOPEDIA EXPLAINS 'Corporate Tax'

Corporate taxes are usually levied by all levels of government (i.e., State and Country). Corporate tax rates and laws vary greatly around the world, as different governments and countries view corporate taxation in different ways. For example, those in favor of lower corporate tax rates point to the possibility for greater economic production if companies are taxed less. While others see higher corporate tax rates as a way to subsidize government spending and programs for the nation's citizens.

RELATED TERMS
  1. Double Irish With A Dutch Sandwich

    A tax avoidance technique employed by certain large corporations, ...
  2. Form 4797

    A tax form distributed by the Internal Revenue Service (IRS) ...
  3. Levy

    The legal seizure of property to satisfy a debt. In the U.S., ...
  4. Windfall Tax

    A tax levied by governments against certain industries when economic ...
  5. Franchise Tax

    A tax levied at the state level against businesses and partnerships ...
  6. Corporation

    A legal entity that is separate and distinct from its owners. ...
Related Articles
  1. An Overview Of Corporate Bankruptcy
    Bonds & Fixed Income

    An Overview Of Corporate Bankruptcy

  2. Putting Management Under The Microscope
    Options & Futures

    Putting Management Under The Microscope

  3. What is the purpose of a
    Investing

    What is the purpose of a "repatriated ...

  4. 10 Sources Of Nontaxable Income
    Taxes

    10 Sources Of Nontaxable Income

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center