Corporation Tax is a tax charged on the taxable incomes (Profits) of entities such as limited companies and other organizations including clubs, societies, associations and other unincorporated bodies.
This guide provides basic overview of Corporation Tax. It explains the meaning of “Corporation Tax”, who is liable and what you must do and when if you are subject to Corporation Tax requirements. It outlines how the tax is calculated, what are the applicable tax rates and when to pay.
It also explains common income tax terms such as “Self Assessment”, “Accounting Period” and “Taxable Profits”.
Corporation Tax is a tax charged on taxable income (Profits) of entities such as limited companies, institutions or organizations including clubs, societies, associations, co-operatives, charities and other unincorporated bodies.
Taxable incomes (profits) for charging Corporation Tax include:
- Profits from business undertakings
- Profits from conducting investments (except such dividends which are taxed differently as final taxes)
- Tax paid out of turnover of companies with perpetual unrelieved losses for three consecutive years.