Taxing...........bleeding me bad. :: Questions and answers. Help.

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Topic created : 7.02.2010, 15:32

lon_wolf19

hi all,

Do we have anyone in this forum which can explain the rationale behind taxing rates? This is not because I think that taxing should be aborted. We all pay various taxes to our resp. Govt. of the countries we live in, so why it should be different in virtual world. My point of dissent is due to another matter. See the following figures:

9 October 06 2 October 06 25 September 06 18 September 06

122 286.00$ 116 291.00$ 106 599.91$ 37 294.90$

40 557.69$ 38 527.48$ 37 661.48$ 33 381.96$

56 640.23$ 65 969.09$ 57 990.69$ 1 714.85$

25 088.08$ 11 794.43$ 10 947.74$ 2 198.09$

As far as i can comprehend, the figures for 18-25 sept and that of 25 sept-2 Oct also are fine. I earn more pay more taxes. OK

But i have got confused as to why in the last update of 9 Oct i have been charged over twice the tax amount even though the turnover has just risen by 6k I am malicious

???
If only we had a Tax tribunal also in this game............

I think that this is big turn-off for new players if they can't come to know why they are being charged almost twice the amount they were earlier as taxes.

Any ideas people???

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7.02.2010, 17:12

Company 2.0

Different regions have different tax rates. If most of your revenue was from a high tax rate region you will naturally pay more tax.

Admin have also made mention in a few posts about the tax holiday for new players. It seems that the tax rate is reduced for a set number of days after starting your company. Maybe you have passed this number of days and no longer get the tax break?

7.02.2010, 22:07

Jythier

Is that for the whole company? We pay taxes by subdivision, not the whole company, so if a couple subdivisions are doing really well profit-wise, and the offices/labs are bringing down your profit, you will still pay the same tax as if you don't have that extra expense. That's also why you shouldn't charge very much for product you sell to yourself - if you buy it from yourself at a high price, that subdivision is now paying lots of taxes on that money, whereas if you sell it to yourself cheap, you have it for another week before paying taxes on it.

7.02.2010, 22:15

Deira

As far as I can tell, you pay taxes like in real life.
Meaning that you are paying NOT after the revenue-expense, but after real profit.
For example you have one store selling only widget type 1 for @1000 a piece and you sold 500 peices in one update,
but you also bought 750 pieces @600 per piece as supplies.
revenue 1000*500= 500K
expense 750*600K=450K - and of course other expenses like staff and so on, but thats irrelevant now.
BUT you can subtract only those expenses from the revenue which you actually sold, ie. only the supply price of 500 pieces of widget.
So you only can count 500*600=300K expenses against the 500K revenue.
The 250 other widget you bought from your profit, and you cant subtract it from your revenue only when you will sell them.
Actually it doesnt matter whether you buy anything from your profit, or its in cash, you have to pay tax after it.
So technically it can happen that you have negative income and you still have to pay income taxes.

7.02.2010, 23:49

Jythier

Honestly that's from the poor accounting in this game. Revenues and expenses should be matched up - an investment in product to be sold is not an expense, it's an asset. A building is not an expense, it's an asset. I don't know why this game puts it as expense. Every other game seems to do this too, but expenses should be matched up with when you use whatever it is - ie, if you sell 500 goods, then the cost of 500 goods should be considered. But here on the financials they show you the cost of all purchased goods. However for taxes they only count the ones you actually sell, at prime cost. Of course, this makes sense to me as I have an accounting degree, but I really don't think other people learning about business should have these horrid financial statements.

8.02.2010, 00:25. Subject: Tax calculations

light76212001

I find the tax is fair and a great system. They estimate costs due to transfer of good between wareshouse and reselling and other miscillaneous weidies. UNDER WIKI TAXES

Profit taxes is calculated as follows (per 1 unit of produced and sold goods):

PT = (SP — EC) x (PT rate/100)

Where:

SP — actual sale price of produced goods;

EC — estimated cost of produced goods;

PT rate - profit taxes rate (%).

Prime cost includes all main expenses per one turn

Virtonomics estitimate the cost of produced goods. (LION WOLF) I hope that explains it.

9.02.2010, 18:33

lon_wolf19

thanksJythier, light76212001, Fractal, Deira. the discussion has cleared many of the confusions that i had earlier. I will be now more able to watch hows and whats and whys of the tax-net in the game.

I find the tax is fair and a great system. They estimate costs due to transfer of good between wareshouse and reselling and other miscillaneous weidies. UNDER WIKI TAXES

I believe that considerable percentage, if not majority of public in most countries, would say that taxes are unfair and harsh. I am malicious

But That doesn't mean they stop living, so it will also not mean that we stop playing this innovative and wonderful game. Very we!

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