Corporate Tax Rate

The corporate tax rate is the percentage of a company’s profits that it must pay to the government in taxes. For example, if a company earns $1,000,000 in profit and the corporate tax rate is 21%, it will pay $210,000 in taxes. This rate can vary by country and can change based on government policies. The corporate tax is a significant source of revenue for governments and can influence business decisions, such as where to invest or how to structure operations. Lower taxes can encourage investment, while higher taxes may lead to increased costs for consumers.