Corporate Income Tax
A direct tax imposed by a jurisdiction on the income or capital of corporations or analogous legal entities.
Corporate Income Tax (CIT) is levied on a company's net profits (revenue minus allowable expenses). Rates vary significantly worldwide, from 0% in some offshore jurisdictions to over 30% in others. Understanding CIT is crucial for founders when choosing where to incorporate, as it directly impacts the company's bottom line.
Related terms
Tax & fees
Double Taxation Treaty (DTT)
An agreement between two countries to prevent the same income from being taxed twice.
Tax & feesVAT Registration Threshold
The specific level of taxable turnover at which a business must legally register for Value Added Tax (VAT).
Tax & feesFranchise Tax
A tax charged by some US states for the privilege of doing business or incorporating there.