Are business taxes on income/revenue or profit?
In the world of business, it's common to question whether taxes are levied on income/revenue or profit. Generally speaking, businesses are taxed on their profits, which is the income earned after deducting the expenses. It's not on the gross revenue, because it wouldn't account for the costs involved in running the business. It's crucial to understand this to ensure proper financial planning and to avoid surprises when tax season rolls around. So, remember, taxes are usually calculated after your expenses have been subtracted from your revenue.
