Final answer:
All corporations are required to file a corporate income tax return, regardless of their profit levels. The effective tax rate is disclosed in financial statements and varies by jurisdiction. Specific tax rates are applied based on the company's income bracket.
Step-by-step explanation:
Companies that are structured as corporations are required to file corporate income tax returns on their profits. This tax is a major source of revenue for the federal government and is applicable to corporations as they are considered separate legal entities. While the taxable income for corporations is calculated in a manner similar to individuals, involving net profits and adjustments, there is no minimum amount of income required to file a return; all corporations are obliged to file regardless of the level of profit or loss.
The effective tax rate for a company is typically disclosed in financial statements, representing the average tax rate paid on the company's income. This rate may vary by jurisdiction but typically includes consideration of tax benefits a company may receive. As per the referenced tax brackets, there is a flat 34% tax rate on corporate incomes ranging from $335,000 to $10,000,000, which increases to a flat rate of 35% for incomes above $18,333,333.