Abstract

Corporate Income Tax has been of very high significance especially in the developing countries and not only because it contributes to the country’s economy but also because of the impact that it creates on the income flows and world trade because of various tax competition. the Corporate taxation system for the developing countries is rather difficult because on one hand the corporate taxation provides them with a revenue that none of the other taxation system provides and it is also far more feasible than income tax as Income tax is levied on every member of the country whereas this corporate tax is only placed on a few companies and most of the revenue is also coming from a few companies. This paper looks at CIT from a theoretical as well as empirical perspective. Some principles of CIT are similar for all countries but the problem arises that the position/characteristic of the developing countries yields different tradeoffs. Moreover, the main aim of this paper is to study the main differences in CIT between developing and advanced countries and even go beyond the analysis and look at the changes that these developing countries need to incorporate.

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