Corporate income tax is a tax levied on the profits made by enterprises or other economic organizations within a certain period of time. The calculation method of corporate income tax is affected by the tax laws and policies of various countries, and this article will introduce the calculation method of corporate income tax in China and analyze it in detail through examples.
1.Overview of corporate income tax
In China, the taxpayers of enterprise income tax include all kinds of enterprises, public institutions, social organizations, private non-enterprise units, law firms, accounting firms, etc. Corporate income tax is calculated on the basis of taxable income, which is usually 25%.
2.Calculation of taxable income
Taxable income refers to the total amount of income obtained by a taxpayer in a tax year, after deducting non-taxable income, tax-exempt income, various deductions and losses of previous years that are allowed to be recovered. The specific calculation formula is as follows:
Taxable Income = Total Income - Non-Taxable Income - Tax-exempt Income - Deductions - Allowable Losses from Previous Years
3.Analyze specific examples
Suppose that the total income of an enterprise in a tax year is 10 million yuan, of which the non-taxable income is 500,000 yuan, the tax-exempt income is 1 million yuan, the deductions are 3 million yuan, and the allowable loss of the previous year is 200,000 yuan. The taxable income of the enterprise is calculated as follows:
Taxable income = $10 million - $500,000 - $1 million - $3 million - $200,000 = $5.3 million
4.Calculation of corporate income tax
Corporate income tax is calculated by multiplying the taxable income by the applicable tax rate (usually 25%). The specific calculation formula is as follows:
Corporate income tax = taxable income Applicable tax rate = 5.3 million yuan 25% = 13250,000 yuan
Therefore, the corporate income tax payable by the enterprise for that tax year is 13250,000 yuan
Corporate income tax is calculated by multiplying the taxable income by the applicable tax rate. When calculating taxable income, factors such as total income, non-taxable income, tax-exempt income, various deductions, and allowable losses from previous years need to be considered. In practice, enterprises should accurately calculate and declare enterprise income tax in accordance with the provisions of national tax laws and policies.