This paper gives a general overview of the corporate taxation system in the United States. The work begins with a definition of taxes and tax systems followed by the classification of business entities in the US. The main part describes the relevant legal taxation aspects that corporations face in the US and deals with the critical issue of tax deferral of US multinationals. This assignment will focus on the federal income tax that has the most importance for business decision making. This assignment ends with a final reflection of the topic and a conclusion by the author.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- List of Abbreviations
- List of Figures
- List of Tables
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper provides a comprehensive overview of the corporate taxation system in the United States. The analysis begins with a definition of taxes and tax systems, followed by a classification of business entities in the US. The main focus is on the legal aspects of corporate taxation in the US, specifically the federal income tax. The paper also examines the crucial issue of tax deferral employed by US multinational corporations. The author concludes with reflections on the topic and a summary of general management aspects.
- Definition and Classification of Taxes and Business Entities
- Legal Aspects of Corporate Taxation in the US
- Federal Income Tax and its Significance for Business Decisions
- Tax Deferral Strategies of US Multinationals
- General Management Aspects of Corporate Taxation
Zusammenfassung der Kapitel (Chapter Summaries)
The paper will delve into the intricacies of the US corporate tax system, commencing with a fundamental explanation of taxes and their various forms. This foundational understanding will be further enriched by a categorization of business entities in the US, providing a context for the subsequent analysis. The core of the paper will then explore the legal framework surrounding corporate taxation in the US, focusing on the federal income tax, its structure, and its impact on business decisions. A key aspect of this exploration will be the examination of tax deferral strategies employed by US multinational corporations, shedding light on their potential implications.
Schlüsselwörter (Keywords)
Corporate Taxation, US Tax System, Federal Income Tax, Business Entities, Tax Deferral, Multinational Corporations, Legal Aspects, Business Decisions.
Frequently Asked Questions
What is the main focus of corporate taxation in the US?
The primary focus is on the federal income tax, which significantly influences business decision-making and investment strategies.
How are business entities classified for tax purposes in the US?
Entities are generally classified as C-corporations, S-corporations, partnerships, or sole proprietorships, each with different tax implications.
What is tax deferral for US multinationals?
Tax deferral is a strategy where corporations delay paying US taxes on profits earned by foreign subsidiaries until those profits are repatriated.
Why is the US corporate tax system considered complex?
Complexity arises from the interplay between federal, state, and local taxes, as well as numerous deductions, credits, and international tax rules.
How does taxation impact US business decisions?
Tax rates and incentives influence where companies locate their headquarters, how they structure investments, and how they distribute profits.
- Quote paper
- Master of Business Administration Andreas Kauerhof (Author), 2016, The Corporate Tax System in the United States, Munich, GRIN Verlag, https://www.grin.com/document/354489
