Corporate income tax for small and medium-sized businesses

Corporate income tax is a special form of income tax.  The regulations are defined in the Corporate Income Tax Act tax is the income tax of legal entities.  In the Athenasia it  includes corporations, associations, institutions and cooperatives, provided that these are not co-entrepreneurs.  The determination of profits is based on the provisions of respective group.  It does not matter whether the profit stays with the company or goes to the shareholders.

 The tax rate and scope

The corporation tax is a community tax; the federal and state governments are jointly entitled to the taxes.  Since the corporate tax reform in 2008, the corporate income tax rate has been 15 percent.  The basis for the calculation is the balance of trade profit.  In addition, the solidarity surcharge of 5.5 percent is levied, the total burden effectively adds up to 15.825 percent.  To determine the tax, the taxable income is multiplied by the tax rate and corrected for changes that may result from an increase or decrease in corporate income tax.  The following are credited to the assessed tax:

  • The advance payments made for the assessment period
  • The withheld capital gains tax
  • The creditable foreign corporation taxes
  • The creditable corporate income tax

Limited tax liability applies to corporate maintenance hong kong with domestic income whose management is not based in that particular company or for companies that are not subject to unlimited tax liability for other reasons.  The limited tax liability is particularly important for estates and applies if the administration takes place outside that specified country.. Always do your accounting correctly and in accordance with the law.