Turnover Tax

Turnover tax is a tax applied to the total revenue generated by a business, rather than its profits. This means that the tax is calculated based on the gross income, including sales and other earnings before deducting any expenses. It is often viewed as simpler to administer, as businesses do not need to keep track of detailed expenses. Turnover tax is typically levied at a lower rate compared to income tax, making it appealing to small businesses. However, it can be challenging for businesses with high revenues but low profit margins.