To determine the Total Business Profit (TBP) and Business Profit Tax (BPT) to be paid by SHALA Merchandising Enterprise, we need to calculate the taxable income first.
Taxable income = Sales - Cost of Goods Sold - Operating Expenses
= Br 300,000 - Br 200,000 - Br 62,000
= Br 38,000
As SHALA Merchandising Enterprise is a Category "B" taxpayer, the tax rate for BPT is 30% on the taxable income.
BPT = Taxable income * Tax rate
= Br 38,000 * 30%
= Br 11,400
Therefore, the TBP to be paid by SHALA Merchandising Enterprise is Br 38,000 and the BPT to be paid is Br 11,400.
SHALA Merchandising Enterprise is category " B " tax payer but not a body The enterprise reported Br 300,000 sales receive : Br 200,000 cost of goods sold and Birr 62,000 operating expenses during the tax year Ending sene 30 , 2007 Required : Determine the TBP and BPT to be paid
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