Glossary / Corporate Income Tax (CIT)

What is Corporate Income Tax (CIT)?

Corporate Income Tax (CIT) is a direct tax on company profits. Companies pay CIT on taxable profit in a single financial year. Deductible losses can offset against profits to reduce taxable amounts.

Corporate Income Tax explained

CIT applies to net profits - total revenue minus allowable deductions like cost of goods sold, operating expenses, depreciation, and interest. Rates vary by country but typically represent a percentage of taxable income. Lower CIT liability means higher retained earnings for reinvestment, growth funding, or financial cushioning. Poor CIT management leads to overpayment, penalties, and missed opportunities.

Keeyns: helping tax departments with our collaborative platform

Our software centralises tax data and documents whilst streamlining compliance processes to become more efficient, gain control and reduce workload. Looking to streamline your CIT and global document sharing? Explore our tax solution at https://keeyns.com/solutions