If you earn $10 from selling lemonade and need to give $2 to your parents, that’s income tax. Companies make money and have to give part of it to the government.
Earn money today, but pay taxes later. Taxes are based on published financials but recognized in another year.
Companies pay a special tax, like a membership fee, to be part of the ‘business club’ in a country. The more they make, the more they pay
When you hire a friend to help with your lemonade stand, you pay them a share. Companies do the same when they pay their employees.
Imagine selling a cup of lemonade for $1. You ask for an extra 10 cents for park cleaning. This is sales tax, added to the price companies charge.
If you have a table for your lemonade stand, you might pay a few coins for using that spot. Companies pay taxes for owning or using land.
This is an extra price for special products. If you sell super fizzy lemonade, the government may charge a tax for that, called excise tax.
If you bring lemons from another neighborhood, you pay a few pebbles at the border. This is like customs duties for companies importing goods.
When lemonade stands in different neighborhoods share items, they decide fair charges. Companies pay taxes for products sold between branches.
Every time you add something special to your lemonade, like a straw, you pay extra pennies. This is VAT – added each time value is added to a product.
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