WHAT IS CORPORATION TAX ?

Corporation tax is the tax which is levied or collected from entity,firm or companies.With reference to the united republic of Tanzania corporation tax form thirty percent of the net profit earned by the firm after the deduction of all expenses which are allowable as revenue expenditure.
Revenue expenditure refer to those expenditure incurred by the corporation in the course of earning revenue. Expenditure by the firm on salaries,wages,transport,rent,power,lighting and heating are all allowable as revenue expenditure and are deducted in the calculation of the taxable profit of the firm.Consumption expenditure as well as capital expenditure are deducted in financial statement for accounting purpose but on reaching tax authority for tax assessment the amount is added back to get the actual net profit figure for which the 30% will be applied to get the tax payable by the entity or corporation.