A business tax is a type of levy imposed on companies or other commercial enterprises by government entities as part of their overall revenue collection efforts. The amount of tax that a company must pay typically depends on factors such as its size, location and industry sector, with different countries having varying systems for calculating and collecting business taxes.
In some cases, business taxes may be based on the company's profits or income, while in others they may be levied as a fixed percentage of the firm’s total revenue. Business taxes can also take the form of excise duties or value-added taxes (VAT), which are charged at different stages of production or distribution.
Overall, business taxes serve to help fund government programs and services while also helping to regulate economic activity within a country.