Corporate law and income tax

Corporate taxes can be lowered by various deductions, government subsidies, and tax loopholes, and so the effective corporate tax rate, the rate a corporation actually pays, is usually lower than the statutory rate; the stated rate before any deductions.
Corporate taxes are collected by the government as a source of income.

S corporations are taxed in a manner similar, but not identical, to partnerships (i.e. all tax items [e.g. income, deductions] flow through to the owners of the entity).
Thus, S corporations generally are not subject to US federal income tax.

Since the Tax Cuts and Jobs Act(TCJA) of 2017, the statutory corporate income tax rate—state and federal combined—is 25.8 percent.
The TCJA reduced the federal corporate income tax rate from 35 percent to 21 percent, dropping the combined rate from 38.9 percent to 25.8 percent and bringing the U.S. nearer to the worldwide average.

A corporation must pay its tax due in full no later than the due date for filing its tax return (not including: