by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What are Estimated Tax?Estimated tax is an estimated amount that is paid periodically on ones earned income to cover the tax liability. Estimated tax is calculated for those income sources that are not directly subject to withholding taxes, such as dividend earnings,...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Effective Tax Rate?Effective tax rate is the average tax rate applied to a individual or corporations income. Formulas for calculating an effective tax rate are as following; For an individual: Effective tax rate = Total Tax Expense Taxable Income For a...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Double Column Tariff?A Double Column Tariff is a tariff system which has two different duty rates for a particular product. Here, the import tax on the product depends on the country of its origin. The rate is assessed by the importing country’s trade...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Duty Free Zone?The Duty Free zone is an area where products are sold without the import, sales, value-added or other taxes. These products are sold to the international travelers with an understanding that they will take these products outside of the country...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Deferred Income?Deferred income is the advance payment received for a service or product yet to be delivered. The deferred income is recorded as a liability in the balance sheet and it remains there until the product or the service is delivered to the client....
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Degressive Tax?Any tax where the rate of the tax decreases as the amount subject to taxation increase.How Does a Degressive Tax Work? This kind of tax puts more burden on the poor and relieves the rich. The rate of tax is disproportionate to the ability of...
