Mortgage Help   Mortgage Rates Real Estate Credit Foreclosure Tax
	Tax Corporate Tax   Property Taxation: Depreciation Taxation of Profit Adjusted Basis Home Mortgage Interest and Points Deduction   1031 EXCHANGES Capital Gains Tax Corporate Tax Corporation Dividend Tax Double Taxation European Union Savings Taxation Homeowners exemption Foreign Investment in Real Property Tax Act. Flat Tax Principles of Income Tax Income taxes Inheritance Tax Installment Sales Poll Tax Progressive Tax Property taxes California Propositions Purposes and Effects of Taxation Retirement Tax Sales Tax Sales leaseback Tariff Tax Credit, Exemption Equivalent and Tax Tax Rates Tax Treaty Direct and Indirect Taxation Value Added Tax Corporate tax is the term that is used to refer to a direct tax levied by various jurisdictions on the profits made by companies or associations. As a general rule, this varies substantially between jurisdictions. In particular, allowances for capital expenditure and the amount of interest payments that can be reduced from gross profits while working out the tax liability often vary substantially. So also, the tax rates may vary depending on whether profits have been distributed to the shareholders or not. Profits which have been reinvested need not always be taxed. For instance, in the United Kingdom, where the main corporate tax is referred to as corporation tax, the depreciation on many capital assets excluding finance leases and certain intangible assets, is not considered while computing taxable profits. Instead of this, capital allowances may be claimed, usually at the rate of 25% per annum on a reducing balance basis. In France, however, depreciation is permissible within certain rates, per classes of asset, set down by statute. One of the features of a classical tax system which includes corporate taxation, is double taxation, according to which profits made by a company are subject to a corporation tax, and further tax (another category of taxes, usually income tax) is payable by the company's shareholders in addition to it, when the same profits are distributed by way of a dividend. On the contrary, under an imputation tax system, some or all of the tax paid by the company may be attributed on a pro rata basis to the shareholders by way of a tax credit, to reduce the income tax payable on a distribution. During the years ranging from 1973 to 1999, the United Kingdom operated a partial imputation system, where the shareholders were able to claim a tax credit reflecting the advance corporation tax or ACT paid by a company at the time when a distribution was made. A company could at will, set ACT off against its annual corporation tax liability. Alternatively, in certain jurisdictions, distributions are made either fully or partially exempted from tax-for instance, certain jurisdictions, such as Austria and Germany, operate a double income system on distributions, where only half of the distribution is subject to tax, or, equivalently, the tax rate is halved. Similarly, the Netherlands operates a participation exemption under which certain distributions are exempted from tax.