Question

1.      What was/is the tax rate structure for Corporations?

• For 2017 and 2018
• Note: You are looking for Corporate tax rates and then identify and discuss the structure of those rates (progressive, proportional, regressive). You may also look up additional resources as well).

Answer 1

Corporate tax is levied by the jurisdiction on corporations based on income or capital of corporations. Corporations have to pay taxes based on net profit.

Corporate tax rate for 2017 is levied at the rate of 35% and it will be taxable at the rate of 21% for corporations whose tax year is after 1st Jan 2018.

Proportional tax rate. Which is constant for all tax payers

Even if income is high or low tax will be levied at the constant rate

Progressive tax rate..which denotes that tax levied progressively based on income. For high income level tax payers it will be levied at higher rate and for lower income tax payers it will be levied at lower rate of tax.

Regressive tax rate...in this case tax will be levied for lower level of income tax payers at higher level and for higher level of income tax payers at lower rate.