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- DictionaryCorporation tax
noun
- 1. tax levied on companies' profits. British
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Corporate tax, also known as business tax, is a levy imposed on the income, profits, or capital gains of corporations and other legal entities. It is a mandatory financial contribution that corporations make to the government, typically based on their annual earnings.
The corporate income tax is the third-largest source of federal revenue, although substantially smaller than the individual income tax and payroll taxes. It raised $424.7 billion in fiscal year 2022, 8.7 percent of all federal revenue and 1.7 percent of gross domestic product (GDP).
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By Bethany K. Laurence, Attorney · UC Law San Francisco. Why Trust Us? Fact-Checked. Corporations are taxed differently than other business structures: A corporation is the only type of business that must pay its own income taxes on profits.
A corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses, with income reportable under the individual income tax. Corporate Tax Rate.
Dec 22, 2023 · Corporate tax —A percentage of corporate profits taken as tax by the government to fund federal programs. Sales tax —Taxes levied on certain goods and services; varies by jurisdiction....
May 31, 2022 · US & World Economies. US Economy. U.S. Corporate Income Tax: Its Effective Rate and History. How the Tax Cuts and Jobs Act Changes Corporate Taxes. By Kimberly Amadeo. Updated on May 31, 2022. Reviewed by. Robert C. Kelly. Fact checked by Emily Ernsberger. In This Article. View All. Photo: recep-bg / Getty Images. Was this page helpful?
noun [ U or C ] UK uk us ( US corporate income tax) Add to word list. TAX. tax that a company has to pay on its profits: The chancellor proposed to reduce the small companies rate of corporation tax to 24%. As a charity they do not pay corporation tax on profits. a reduction / increase / rise in corporation tax.
