Minimum Tax (MT) for Small Taxpayers

Minimum Tax (MT) for Small Taxpayers

Payment of income (profit) that is paid monthly will become minimum tax automatically for small taxpayer.

Minimum tax for small taxpayers is the similar to Minimum Tax (MT) under medium or large taxpayers, please read more: Minimum Tax.

-MT is calculated at a rate of 1% of annual turnover and is inclusive of other taxes except VAT

-MT remit is possible when paying the annual TOP

Tax Base for MT= total revenues included any taxes for year/1.1

MT=Tax base for MT x 1%

Example 1

Assume XYZ is small taxpayer. During year 2018, XYZ earned revenues of $11,000 included VAT.

Required

Minimum Tax for XYZ

Answer

Minimum Tax Base = $11,000/1.1=$10,000

Minimum Tax = $10,000 x 1%=$100