How Taxes Are Computed

A Company's tax rate is determined each month based on the number of stores and production lines that the company has. The tax rate will be increased 1% for each store over 6 that a company owns and by 0.75% for each production line over 30 that a company owns.

Your company's current tax rate is 0.0%.

Next Months Tax Rate

You currently have Stores and 0 Production Lines.

If you make no changes your tax rate for next month will be 0.0%.

Paying your Taxes

The tax that you owe is paid each month and your cash account is debited by the tax rate times your income. If you posted a loss then you will have negative taxes and will receive a payment from the government.

Tax Reduction Strategies

The best way to keep you taxes low is to keep the number of stores and production lines low, you can do this and still make good profits by retooling your businesses as higher level goods become available. Your taxes will be lower if you have 6 Furniture Stores rather than 24 Food Stores. The state of the economy and your cash on hand will determine the best time to retool your businesses. Smart business people realize that the only constant in business is change, so a mix of stores and production lines that is very profitable today may not be the best mix as your company grows.