What is the difference between corporate tax and income tax?
At Sukh Tax, your trusted source for comprehensive financial services in Mississauga , we understand the complexities of taxation and aim to provide our clients with the knowledge they need to make informed decisions. In this blog, we will explore the difference between corporate tax and income tax, two essential components of the tax system. Understanding Corporate Tax: Corporate tax is a form of taxation imposed on the profits earned by corporations or businesses. It is important to differentiate between the concept of a corporation and an individual. A corporation is a legal entity separate from its owners, also known as shareholders, and is responsible for paying taxes on its earnings. Corporate tax rates vary depending on the jurisdiction and the size of the corporation. In Canada, for example, the federal corporate tax rate is currently 15%. However, each province also imposes its own tax rate, resulting in a combined federal and provincial tax rate. By understanding thes...