Impact of Corporation Tax Changes - Profit & Loss Account Simulation [Virtual Learning Arcade]

Hints on Decreasing Corporation Tax

Overview

The decrease in the level of corporation tax will appear within the appropriation section of the Profit and Loss Account. The lower corporation tax will mean that the firm will pay less of its profit in tax. The lower level of corporation tax will;

  • Increase profit after tax
  • Increase retained profit carried forward

The Model Settings

The starting level of corporation tax is set at 10%. The input parameters can range between 0% and 20%.

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