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Topic:

Topic created : 28.02.2010, 18:07

donga

hi all,
not cared about taxes before, as every one has to pay them.
but went through wiki yesterday and saw that tax is calculated by using the formula
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 (%).

so it is dependent on our sale prices right?
so if i minimize my SP to be a bit more than EC, say @0.01 more, will i get my taxes reduced.
also what happens if i put my SP as 0.01 or some thing less than EC?how will it calculate the taxes? (as taxes cannot be negative)

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28.02.2010, 18:35

VLLord

Golden Empire

donga

so it is dependent on our sale prices right?
so if i minimize my SP to be a bit more than EC, say @0.01 more, will i get my taxes reduced.
also what happens if i put my SP as 0.01 or some thing less than EC?how will it calculate the taxes? (as taxes cannot be negative)

Yes, taxes depend on sale price.
If SP=EC or SP<EC taxes will be 0. But with 0 taxes your qualification growth will be very slow.

1.03.2010, 07:30

donga

but i'm still paying taxes even when i'm selling all my farm products to myself with $0.01 while the estimated cost is about $3.5

1.03.2010, 10:39

funkydude

The Tax you are paying is known as EXCISE TAX

Excise tax is not an addition to profits tax. It is used only when the produced goods is sold below its prime cost, or in case if rate of profit is below the basic profitability (which is conditionally equal to the profits tax rate in the current region).

In case if rate of profit exceeds profits tax rate in this region, then excise tax is not collected and the player pays only profits tax.

5.03.2010, 08:08

donga

+1
thanks for the info.
all these days i'm paying extra taxes and also lovering my turnover.

List of forums -> Questions and answers. Help.-> reducing taxes

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List of forums -> Questions and answers. Help. -> reducing taxes

List of forums -> Questions and answers. Help.-> reducing taxes