Page 20 - F1 Integrated Workbook STUDENT 2018
P. 20
Chapter 1
6.1 Tax on trading income
Trading income relates to income from the main business activity.
The tax base should be profits.
The accounting profit needs to be adjusted for tax purposes as in many countries
there are differences between what the accounting standards allow you to show as
an income/expense and what the tax system deems to be the income/expense.
These adjusted profits will enable you to calculate the taxable profit.
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