Final answer:
The statement is true; corporations include capital gains in their ordinary income and are subject to the normal corporate tax rates, without any special lower rates for capital gains. The effective tax rate can vary due to tax benefits and credits. Various other taxes also apply to corporations just as they do to other taxpayers.
Step-by-step explanation:
True or False: No special tax rates apply to capital gains for corporations, entire gain is included in income subject to normal corporate tax rates. This statement is generally true. Unlike individual taxpayers who often benefit from lower tax rates on long-term capital gains, corporations are required to include capital gains in their ordinary income. This means that such gains are subject to the normal corporate tax rates. These rates can vary by jurisdiction, but the gains are not privy to the reduced rates applicable to individuals in many cases.
It's also important to note that the corporate tax system factors in an effective tax rate, which is the average rate of tax on a company's income after accounting for various tax benefits and credits. This rate can provide a more accurate picture of a corporation's actual tax burden compared to the statutory corporate tax rates.
Corporations may have distinct treatment in other areas too, facing taxes like property tax, payroll tax, excise tax, customs tax, and value-added tax, in a manner similar to other taxpayers. However, these are not usually categorized as 'corporate taxes' which typically refer to taxes on corporate income and capital.