How does an informal business owner know the amount of tax the business has to pay?

[Min George]

There are so many people that are running informal businesses. The mobile food vendor, the person that operates an agency banking by the roadside and the likes. How do they know the exact amount they are to pay as tax?

 

[magnus2022]

It depends on the government and its policy on taxation. Every country have their way of taxing businesses. In my country, government tax small scale industries 5% of income generated. Medium scale pays around 10% of income generated. There are some businesses that have flat rate especially essential businesses likr healthcare, food businesses etc

 

[King Belieal]

I think the business needs a tax attorney to help them determine the actual amount they have to pay as tax. Or a tax accountant.

 

[eLdavis]

I think you can easily go to the tax office to get a TIM number or what do they call it, they will sort it out for you though.

 

[Springtime]

I think the small business owner may find a freelance or part-time tax consultant to help him/her out.

 

[magnus2022]

The simple thing to do is to visit the tax office and tax officers will put you through. Still, every country has tax laws that state clearly how much you suppose to pay and everything is properly defined in the tax law of every country.

 

[Augusta]

One can use the FIRS self-filing system to file tax returns.
Accurately report your income sources and claim eligible deductions

 

[Suba]

Of course, informal business owners know their tax amounts from their financial records, especially sales turnover. In my country, informal traders, such as mobile food vendors, street vendors, or other vendors without a physical location or shop, are not subject to tax.

 

[Augusta]

For Company Income Tax purposes, the taxable amount is the company's profits for the accounting year or period after deducting allowable expenses.