Okuzeka
Accounting & Tax vocabulary · Income & Corporate Tax

Corporate tax

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, corporate tax means: A tax on the taxable profits of companies, calculated on the profit for the year after allowed deductions and adjustments.

In Turkish: kurumlar vergisi

How it is used

Called corporation tax in the UK and corporate income tax in the US. Companies calculate, provide for and pay corporate tax, often with advance payments during the year.

Example sentences

  1. Our effective corporate tax rate was lower this year because of investment incentives.

  2. Part of the corporate tax is paid in advance during the year as provisional tax.

Common collocations

  • corporate tax rate
  • pay corporate tax
  • effective tax rate
  • corporate tax return
  • taxable incomeThe part of income on which tax is actually calculated, after allowed expenses, exemptions and allowances have been deducted from total income.
  • deferred taxTax that will be paid or recovered in future periods because some income and expenses are recognised at different times in the accounts and in the tax return.
  • tax returnAn official form a taxpayer submits to the tax authority, reporting income, expenses or sales for a period and calculating the tax due.
  • income taxA tax on the income of individuals, such as salaries, rent, business profits and investment income, usually charged at rates that rise as income rises.
  • tax liabilityThe total amount of tax a person or company owes to the tax authority for a period, or more generally the legal duty to pay a particular tax.

More terms: Income & Corporate Tax

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.