Comparison of the Corporate Income Tax in Selected Countries

Abstract

Corporate income tax, whose taxpayers are enterprises, is an important tax and one of the significant sources of funding for the state. The tax incentives for corporate income tax are a central and common concern in economic activities. In recent years, the international trend in corporate income tax has been towards lower tax rates and more favorable policies. This trend promotes national economic development, improves people's living standards, and enhances corporate well-being. This thesis compared corporate income taxes in selected countries, including relevant countries in the ASEAN organization such as China, Thailand, Malaysia, Vietnam, Laos, and Cambodia, to highlight the main differences in determining the final tax burden through specific taxpayer modeling scenarios. This paper introduces the basics of taxation and corporate income taxation and describes the corporate income tax policies in China and selected ASEAN countries. This article describes the economic situation of each country, and secondly, the basic elements of each country's corporate income tax are also introduced in this article.These basic elements include taxpayers, tax rates, taxable income, deductions, tax credits, and incentives. In the computational part of this paper, we compare the actual tax burden in China and ASEAN. We assume a company and describe its financial details. We then calculate the effective tax burden of the company in each country. The paper concludes by comparing and analyzing the effective tax burden of corporate income tax in China and selected ASEAN countries.