What are federal taxes? When do I need to file a tax return?

Federal & State Taxes The U.S. corporate income tax, as we commonly refer to it, is composed of two parts: the “federal tax” and the “state tax”. The concept of both is similar to the state tax and local tax in mainland China. If the state of incorporation requires a basic tax, or if the business has a tax ID/actual business, it must file a return on an annual basis.