7. You own a business that is taxed at the rate of 35%. If your business earns P123 500.00 for the year, how much will you pay as income tax?

To calculate the income tax owed by the business, you can follow these steps:

1. **Identify the tax rate and the earnings:** 
   - Tax rate = 35% 
   - Earnings = P123,500.00

2. **Convert the tax rate into a decimal:** 
   - 35% = 0.35

3. **Calculate the income tax by multiplying the earnings by the tax rate:** 
   \[
   \text{Income Tax} = \text{Earnings} \times \text{Tax Rate}
   \]
   \[
   \text{Income Tax} = P123,500.00 \times 0.35
   \]

4. **Compute the result:**
   \[
   \text{Income Tax} = P43,225.00
   \]

Thus, the amount of income tax you will pay is **P43,225.00**.

### Related Questions
1. **How is the net income calculated after taxes are deducted?**
2. **What would the income tax be if the tax rate changed to 30%?**
3. **If the business had deductions of P10,000, how much would the taxable income be?**
4. **How do changes in the tax rate affect the total tax paid by a business?**
5. **What is the effective tax rate if total expenses are P23,500?**
6. **How does the tax rate compare to the global average for businesses?**
7. **What other types of taxes might a business have to pay besides income tax?**
8. **If revenue is projected to grow by 10% next year, what will the tax be at the same rate?**

### Tip
Always ensure you have a good understanding of the tax rules and regulations for your country or region, as these can have significant impacts on your business's financials.

Learn how to calculate income tax for a business earning P123,500.00 annually at a tax rate of 35%. Understand the steps involved in multiplying earnings by the tax rate to determine income tax owed.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation