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What is "Income from Enterprises?" (Fearless Blue)

Simcountry: Simcountry Bulletin Board  What is "Income from Enterprises?" (Fearless Blue)

Arkh Mori (Little Upsilon)

Wednesday, June 25, 2008 - 07:29 pm Click here to edit this post
They pay 30% of their gross profit to the country, plus usually have higher salary rates (affecting the income tax from your citizens). Then, out of this 70% left they pay salary and material costs. After this, they usually have around 20% left, which is taxed by a country (typically 30%) leaving around 13% of their total sales for a corporation.

If that month is unproductive, you still get your 30%, materials and salary are still paid, but now they're losing money because they didn't make enough to pay your taxes and make profit.

This is why corporations tend to love 0% tax havens, even if the break is minimal on the 'total sales' scheme. That 7% they could have kept is 30% of their entire profit that month.

It's also why Income from Enterprises is higher than Tax. 30% of gross versus 30% of net.

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