2018 Changes to Corporate Tax Rates

 

The tax law that was passed by Congress and signed into law by President Trump on December 22, 2017 called the Tax Cuts and Jobs Act (H.R. 1) made several changes to the corporate tax rates. Below is the UPDATED information.

Effective for tax years 2018 and later, corporate tax rates are reduced to a flat rate of 21%. This rate does NOT apply to pass-through entities such as S-corporations. These entities may qualify for a new QBI "Qualified Business Income" deduction up to 20% of taxable income).

The corporate tax rate on net capital gains is ELIMINATED.

The special corporate tax rates for "Personal Service Corporations (PSC) has been ELIMINATED.