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Accounting & Tax vocabulary · Income & Corporate Tax

Taxable income

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, taxable income means: The part of income on which tax is actually calculated, after allowed expenses, exemptions and allowances have been deducted from total income.

In Turkish: vergiye tabi gelir, vergi matrahı, mali kar

How it is used

Taxable income usually differs from accounting profit, because tax rules treat some income and expenses differently. These differences are why deferred tax exists.

Example sentences

  1. Non-deductible expenses are added back to arrive at taxable income.

  2. Our taxable income was higher than our accounting profit this year.

Common collocations

  • calculate taxable income
  • taxable profit
  • reduce taxable income
  • accounting profit
  • 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.
  • corporate taxA tax on the taxable profits of companies, calculated on the profit for the year after allowed deductions and adjustments.
  • tax-deductibleAllowed by tax law to be subtracted from income when calculating taxable profit, which reduces the amount of tax to pay.
  • 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 exemptionA rule that removes certain income, transactions or organisations from tax, either completely or up to a set limit.

More terms: Income & Corporate Tax

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