Answer: Corporate tax is paid quarterly in the year of income charged at a rate of 30% on net income of a resident corporation. Year of income means a calendar year of twelve months period (meaning the period starting from 1st January to 31st December). However, an entity may apply in writing to the Commissioner for approval to change the entity’s year of income from the calendar year or twelve-month period to another twelve month-period previously approved. Year of income is important for tax accounting purposes.

Corporate tax is computed on the net revenue or net income of a company. Net income/net revenue of a company is the total amount left with the company after making a necessary deduction for various expenses.

In calculating taxable profit, there are expenses which are allowed for revenue expenditures incurred wholly and exclusively in the production of income; these expenses are deducted from income to get taxable income.