How Is Income Tax Calculated in Rosetta Business Planner
August 11th, 2006Q: I can not understand how the income tax is calculated in the Profit and Loss screen in Rosetta Business Planner. I have set tax at 15% in the Financial Parameters screen yet the amount for January-08 to June-08 is incorrect. Accumulated income tax in year 2007/08 is also wrong.
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A: Concerning income tax - the software calculates tax on the accumulative basis.
If you had accumulated loss in the Previous Balance, and/or in the first months of a business plan, Rosetta Business Planner will start calculating income tax only when the accumulative profit is positive. In the specific case of this business plan: loss in the previous year was -182, profit in the current year was +245 and therefore the income tax is calculated based on the accumulative profit of 63.
