Corporation Tax is a tax imposed on the profits of companies and other organizations. It is calculated based on the net income a corporation earns after deducting allowable expenses. The rate of this tax can vary by country and is typically set by the government. Corporation Tax is an important source of revenue for governments, helping to fund public services and infrastructure. Companies are required to file tax returns, detailing their income and expenses, to determine how much tax they owe. Failure to comply with tax regulations can result in penalties and legal consequences.