A corporate tax also popularly known as the company tax or the corporation tax is the tax levied on the capital or income of corporations or analogous legal entities. In most countries, such taxes are levied at the national level, and a tax that is similar to that imposed at the national level could be imposed at the local or state levels. The taxes could also be termed as capital tax or income tax. Generally, Partnership firms are not taxed at the entity level. In most of the nations, the corporations functioning in a country are taxed for the income from that country. Many countries tax all income of corporations incorporated in the country or those deemed to be resident for tax purposes in the country. The income of the company that is to be taxed is computed similarly to the taxable income for individuals. Tax is generally imposed on net profits.