The term business tax is self-explanatory: it is a tax on business income. There are five major types of business taxes: Corporate franchise tax. Employment (withholding) tax. Excise tax. Gross-receipts tax. Value-added tax (VAT). The form you use to file your income tax depends on the type of your business. In any case, you are expected to pay taxes as you receive income throughout the year. If you do not have your tax withheld from your pay, you may have to pay estimated tax, otherwise, pay any tax when you file your return. All businesses except partnerships must file an annual income tax return. Partnerships file an information return.