The Essence of Corporate Income Tax

Abstract

Taxes are one of the main sources of financing for government activities, as well as an economic tool that serves to implement the priorities of the state. Taxes perform two functions: fiscal and regulatory. Both functions are interconnected and interdependent, and neither should be developed at the expense of the other. As a category of the economy, a tax is a mandatory payment that the state collects from both individuals and legal entities. The importance of profit has increased with the transition of the Russian Federation’s economy to a market economy. Profit is a generalized indicator of the financial results of economic activity, determined by the difference between the revenue from the activities of the farm and the losses incurred. The study’s relevance is due, on the one hand, to the great interest in the topic of corporate income tax in modern science, and on the other hand, to its insufficient elaboration. Consideration of issues related to this topic has both theoretical and practical significance. The study object is the income tax. The study subject is the taxation of corporate profits. The study aims to examine the content and role of income tax in the tax system of the Russian Federation. The methodological basis of the study is scientific, general scientific methods such as analysis, synthesis, etc. The study’s theoretical basis was Russian scientists’ works taxation. The author concludes that the main task of the tax authorities is to monitor compliance with tax legislation, the correctness and completeness of tax calculations and mandatory payments, and timely payments to budgets of various levels of the Russian Federation.