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IBD short description: Taxes

This menu allows you to define taxable values and tax rates practically for any tax structure. You can describe: some taxes applied in your country according to the taxation laws; the taxable value for each tax as a combination of your incomes and costs; the tax rates for different levels of the taxable value (for progressive taxes). Using this data IBD calculates the expected tax payments and net profit. In the template project there are some examples of taxes and their taxable values showing how you can use the forms capabilities to build any real tax model. 

Here you can see the documents (forms) of tax calculation. In these forms the white fields are intended for data input, the blue ones are calculated or selected by IBD. 

Taxes applicable to your firm - contains the list of the taxes your firm should pay during the planned period or its part. The unlimited comment field allows describing (with free text) all the conditions of each taxation, taxable values, rates, etc. This is your source for the accurate numerical definitions in this form and also in the other forms of the Taxes menu. Particularly, this form has some fields to define the tax payments conditions and the period when each tax will be valid for your firm (by default - during the entire planned period). 

Forming taxable value for each tax - defines the basis for each tax calculation. Taxable value for each tax is computed as a sum of your firm incomes and costs with certain coefficients. For example, the taxable value for value-added tax is the difference between the total receipts (the receipts coefficients = 1) and the total payments except personnel salary (the payments coefficients = -1). The form presents some groups of incomes and costs that can contribute in the taxable sum. You can specify for each income or cost a coefficient of its participating in the taxable value. The program uses them to calculate the taxable basis to which the tax rates may be applied.   

Tax rates and fixed taxes - defines the levels of taxable values and the corresponding rates for each tax. The simplest tax definition is the fixed rate not depending on taxable sum value. The form allows inputting also any number of taxation levels. It is possible to define also the fixed absolute tax value (instead of a rate) or some fixed tax values: each one - for an interval of the taxable sum.

Tax values - presents the sequence of each tax calculation using the corresponding taxable values and tax rates. The taxable value is computed in the document Form taxable value (see above).  Then the expected annual taxable sum is accumulated, and the annual tax value is calculated according to the tax rate levels (see the Tax rates form above). The average tax rate for a year is the percentage of the annual tax value to the annual taxable sum. The tax value for a time unit is obtained by applying the average annual tax rate to the taxable value for this time unit. Then the tax values are transformed to the expected tax payments regarding the specified payments collection and delay for the considered tax. 

Net profit - shows the profit (or loss) remaining after the payments of all taxes, and also the cash preliminary values (before using loans and investing to external business):

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