Corporate taxation refers to the taxes imposed on the income or profits of corporations. These taxes are typically calculated based on the corporation's net income, which is the total revenue minus allowable expenses. The rates and regulations can vary significantly by country and may include federal, state, and local taxes. In many countries, corporations are required to file tax returns annually, detailing their earnings and expenses. The revenue generated from corporate taxes is an important source of funding for government services and infrastructure. Understanding corporate taxation is essential for businesses to ensure compliance and optimize their tax liabilities.