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Taxes

Retained earnings

This portion is often used for research and development, expansion, or debt repayment. A key aspect of a company's financial strategy is the allocation of after-tax profits. Rather than distributing these funds to shareholders, companies may choose to reinvest them back into the business. This reinvestment can take various forms, such as research and development, expanding operations, or paying off debt. This decision is crucial as it can impact the company's growth and future profitability. Therefore, understanding the concept of retained earnings is essential for anyone interested in finance and business.

Local tax

Local taxes are imposed by lower levels of government, such as state, provincial, county or city governments, in countries with central or federal governments. These taxes ar...

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Capitalize

When we invest in new assets, it is important to record them as additions to our asset accounts rather than as expenses. This is because assets provide long-term benefits to...

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Net worth tax

The net worth tax is a common feature in many European countries, particularly in the realm of property taxation. For resident taxpayers, the taxable base often includes the...

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Net profit

As we delve into the world of finance, it is important to understand the distinction between receipts from business transactions and deductible business expenses. While rece...

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