Definition - What does Corporation Tax mean?
Corporation tax can simply be defined as the levy on the profits of the firm. For calculation of corporate tax, different rates are used for different profits. Corporation tax is tax against profits made by a company during a fixed period. This period is known as a taxable period. The tax is usually applied on operating earnings, which are the result of deducting expenses such as depreciation, SG&A, and COGS from the revenue.
Justipedia explains Corporation Tax
Corporation tax is usually imposed by all forms of government, including the state level. Corporate tax is viewed by different countries in different ways and so the law and regulations surrounding it vary a great deal. Imposing more or less corporate tax has always been a debate. Different countries impose different rates depending upon their need and situations.