Under the tax law, profit and money means revenue and sales. Deductible is the amount of money you do not have to include in income. Since the formula to calculate income which is the taxable company of the company is income = gains – deductible, if income tax not included and deductible inclusion increase, income will decrease and tax will also go through. Non-profitable refers to the amount of money not included in gross profit for the tax law, even if it is income in the profit calculation of the company when making declaration adjustment in corporate tax. It is necessary to calculate the taxable income amount when declaring corporation tax. The profit on business accounting issued by making a settlement reflects the business results and the financial situation of the company and it is different from the taxable income amount which is the purpose of making the tax burden fair .
Example of non-gain of money
Let’s think about an example of non-profitability. Introduction Regarding tax refunds, tax refunds that do not fall into profit or loss, such as inhabitant tax or corporate tax, will not be profitable. On the other hand, refund of tax which becomes deductible for enterprise tax etc will be profitable. Regarding the next dividend received, we may receive dividends when we own shares of other companies through investment etc. This dividend is recorded as non-operating income, but this is not included in profit. Included in gross income is considered income and it is subject to tax, but originally the dividend is paid from the company paid tax payment in the company paid dividend, so it becomes a double charge of tax It is out of scope. Let’s also consider an example of non-deductible. Introduction It is excess. Duties such as executive remuneration and donation money are not deductible if the amount is originally too large to be deductible. Depreciation expenses for exceeding the stipulated limit are also not deductible. Next is a temporary bonus to officers. Bonuses are included in deductible expenses, but executive bonuses not notified in advance are never included in deductible expenses. It is important to understand these because tax benefits and deductibles may affect income and the tax value may change accordingly.