Corporate income tax

Corporate income tax is levied on the taxable profit of companies and other legal entities. The starting point is the accounting profit from the annual accounts, adjusted for non-deductible expenses, tax depreciation, exempt income and losses carried forward. The rate is set by each member state and ranges roughly from single digits to around thirty percent, with some countries applying lower rates to small companies or to the first tranche of profit.

EU law harmonises only parts of the base: the Anti-Tax Avoidance Directive sets interest limitation, exit tax and controlled foreign company rules, and the Pillar Two directive imposes a fifteen percent minimum tax on groups with revenue above EUR 750 million. Companies pay advance instalments during the year and settle the balance with the annual return. Kontevia tracks deductible and non-deductible categories so the adjustments are visible before the accountant prepares the return.