Corporations pay tax on profit income and on the capital. These make up a relatively small portion of total tax revenue. Tax is paid on corporate income at the corporate level before it is distributed to individual shareholders as dividends. To avoid the double-taxation, a tax credit is provided to individuals who receive dividend to reflect the tax paid at the corporate level. This credit does not eliminate double taxation of this income completely, however, resulting in a higher level of tax on dividend income than other types of income. Where income is earned in the form of a capital gain, only half of the gain is included in income for tax purposes; the other half is not taxed. Corporations may also deduct the cost of capital following capital cost allowance regulations.
We at Tax Insight perfectly understanding the corporate tax sector provide professional service while taking utmost care of all its aspects to minimize your liabilities towards the government. Our service includes:
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