# Profit taxation (taxation of earnings)

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- Post ID: 592683
- Modified: 2023-07-25T21:11:50+00:00
- Language: en

## Definition

The basis of assessment for the taxes payable by a company is the profit generated. This puts equity financing at a disadvantage if the borrowing costs incurred can be claimed as expenses for tax purposes. - See debt relief, financing costs, borrowed funds, zero distribution, loss compensation, tax. - Cf. Deutsche Bundesbank Monthly Report, January 2012, p. 15 (on the financing neutrality of corporate taxation; references): Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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