Corporate income tax, sometimes referred to as corporation tax, is a tax legal entities must pay to federal and state governments. Groups who are required to pay corporate income tax include C corporations, cooperatives registered as corporations, and state funded or operated corporations. Meanwhile, those who are exempt from paying this type of tax are insurance funds, most non-profits, port operators, and political parties. Different countries apply different methodologies when computing corporate income tax, but it is usually dependent on the net taxable income of the entity.

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