Learn in the textbookTaxes and the Invoice System
DefinitionCorporate tax (法人税) is a tax levied on the income that a company or other corporation earns from its business.
ExplanationThe corporation that bears corporate tax files and pays it itself, so it is a direct tax (直接税), where the one who bears the tax and the one who pays it are the same. The taxable income is calculated from accounting profit adjusted under the rules of tax law, so it is not necessarily the same amount as profit. On the income statement, corporate tax and other taxes are deducted from income before income taxes (税引前当期純利益), which is ordinary profit plus extraordinary gains minus extraordinary losses, and the remainder is net income (当期純利益).
AnalogyIt is like a harvest levy based not on the whole crop but on what is left in hand after paying for seed and fertilizer.
Memory hookA "corporation" is an organization the law treats as a person. Link it to the income tax on individuals: corporate tax is the version for corporations.