corporate tax policy

Corporate tax policy refers to the rules and regulations that govern how businesses pay taxes on their profits. Governments set these policies to generate revenue for public services while aiming to create a fair system that encourages investment and economic growth. Typically, businesses pay a percentage of their earnings as tax, which can vary by country or industry. Tax policies also include rules about deductions, credits, and incentives that influence corporate behavior. Effective corporate tax policy balances raising funds with promoting a competitive environment for businesses to thrive.