Economic Consequences of Corporate Tax Reforms in The Post-Pandemic Era

Abstract

Corporate taxes play a crucial role in financing the public treasury and serve as a regulatory tool for public policy, while also holding significant importance in corporate finance. The corporate taxation system has turned into quite a headache—it's burdensome, inefficient, and way too complicated, all thanks to the constant changes in the rate structure. These taxes can be unpredictable when it comes to revenue, since they rely on corporate net income, which tends to go up and down in cycles, unlike other major tax sources. The prominence of corporate taxes can be attributed to several factors. They are politically feasible and manageable from an administrative standpoint. In terms of fiscal principles, corporate taxes are straightforward, cost-effective, reliable, and easy to collect. They have emerged as a vital instrument for fiscal administration. Within the realm of taxation economics, corporate tax occupies a delicate position. One of the advantages of corporate taxes is that they are relatively easy to collect; they can be clearly identified, tracked, and companies cannot easily evade tax obligations. Given the growth of the corporate sector in recent times, corporate taxation now has a broad reach. Additionally, corporation tax tends to present fewer administrative challenges, which is why it holds greater significance in the revenue frameworks of developing countries.