Browsing: Corporate Tax

Corporate tax is a direct tax imposed on the profits of businesses by the government. It applies to both domestic and foreign companies, with rates varying based on factors such as revenue, industry, and location. In India, corporate tax is levied under the Income Tax Act, 1961, and companies are taxed at different rates depending on their classification. Domestic companies pay taxes on their global income, while foreign companies are taxed only on income earned within India. Governments use corporate tax revenue to fund public services, infrastructure, and economic development initiatives.

Corporate tax rates differ across countries, with some nations offering lower tax rates to attract businesses. Companies can reduce their tax liability through deductions, exemptions, and incentives, such as those for research and development, charitable donations, and capital investments. Additionally, businesses must comply with tax regulations to avoid penalties and audits. Strategic tax planning helps corporations optimize their financial performance while ensuring compliance with legal requirements. Over time, corporate tax policies evolve to reflect economic conditions and government priorities, shaping the business landscape globally.