Corporate tax refers to the levying of taxes on the profits and income of corporations or businesses. It is a direct tax imposed by governments on the earnings of companies, typically calculated as a percentage of their taxable income. Corporate tax rates and regulations vary widely across countries, and they play a significant role in shaping the business environment and economic competitiveness. The tax base for corporate taxation usually includes profits, capital gains, and other income generated by corporations during a specified period. Corporations are required to file tax returns and comply with relevant tax laws and regulations to determine their tax liability. Governments may use corporate tax revenue to fund public services, infrastructure projects, and other essential functions. Corporate tax policies are subject to ongoing debate and reform as countries strive to balance the need for revenue with the goal of fostering economic growth, attracting investments, and ensuring a fair and equitable tax system.