SHALA Merchandising Enterprise is a category "B" tax payer but not a body The enterprise reported Brr 300,000 .00 sales receive : Brr 200,000 cost of goods sold and Brr 62,000 operating expenses during the tax year ending sene 30,2007 Required: Determine the TBP and BPT to be paid
To determine the Tax Base Percentage (TBP) and Business Profit Tax (BPT) for SHALA Merchandising Enterprise, we need to follow the tax rules and rates set by the relevant authorities. However, since no specific country or jurisdiction is mentioned in the question, we cannot provide an accurate answer. The tax rates and regulations vary from country to country.
Please provide the country or jurisdiction for us to assist you with the accurate calculations.
To determine the Total Business Profile (TBP) and Business Profits Tax (BPT) to be paid by SHALA Merchandising Enterprise, we need to calculate the taxable income and apply the appropriate tax rates.
1. Calculate the Taxable Income:
Taxable Income = Sales - Cost of Goods Sold - Operating Expenses
Taxable Income = Brr 300,000 - Brr 200,000 - Brr 62,000
Taxable Income = Brr 300,000 - Brr 262,000
Taxable Income = Brr 38,000
2. Calculate the Total Business Profile (TBP):
TBP is calculated based on the previous year's sales as follows:
TBP = Sales x 0.015
TBP = Brr 300,000 x 0.015
TBP = Brr 4,500
3. Calculate the Business Profits Tax (BPT):
BPT is calculated based on the taxable income using the following tax rates:
- 10% for the first Brr 5,000
- 20% for the next Brr 15,000
- 25% for the remainder
BPT = (10% x Brr 5,000) + (20% x Brr 15,000) + (25% x (Taxable Income - Brr 20,000))
BPT = (10% x Brr 5,000) + (20% x Brr 15,000) + (25% x (Brr 38,000 - Brr 20,000))
BPT = Brr 500 + Brr 3,000 + Brr 4,500
BPT = Brr 8,000
Therefore, the TBP to be paid by SHALA Merchandising Enterprise is Brr 4,500, and the BPT to be paid is Brr 8,000.