TAX AND CORPORATE TREATMENT OF RESULTS OF COMMERCIAL BANKS AND CREDIT COOPERATIVES: A COMPARATIVE STUDY

Abstract

This theoretical essay seeks to highlight the differences in assessment and taxation of results of the credit cooperatives and commercial banks, besides showing the allocations of net income at the end of the period. The study is grounded in the literature on finance and the financial market, besides using the current legislation that deals with taxation and allocation of income. Literature and legislation referred identifies the Cooperative Act is largely responsible for the differences between commercial banks and credit cooperatives in regard to taxes on income. Already the allocation of income allows for account of the specific Laws to each institution. It is concluded that credit cooperatives are subject to a lower taxation load on the result when compared to commercial banks, and the allocations of net income will depend on specific laws applicable to each of these financial institutions.