Dear friends, the word tax burden refers to the economic pressure we are under because of paying taxes. It is like a part of the "price" we pay for the enjoyment of public services and the construction of the nation, which can be the amount of money we actually hand over, or the proportion of our income and profits that are taxed.
Here's an example:
Average tax burden: For example, if you earn 1 million yuan a year, and finally pay 200,000 yuan in taxes, then your average tax burden rate for this year is 20%. In other words, for every 100 yuan earned, 20 yuan is used to pay taxes.
Marginal tax burden: more like a tiered tax rate, for example, if you earn an extra 1,000 yuan, and you have to pay an additional 200 yuan in tax, then your marginal tax burden is 20%, which means that for every additional dollar of income, 20 points will be handed over to the tax bureau.
In addition, there are different calculation methods for different types of taxes
VAT tax rate: For example, when doing business and selling goods, first calculate how much VAT should be paid, then divide it by the total sales (excluding VAT), and then multiply it by 100% to get the VAT tax rate.
Corporate income tax rate: For a company, divide the actual corporate income tax payable by the company's total annual profit, and then multiply it by 100%, you can know whether the income tax burden of the enterprise is heavy.
Other taxes, such as resource tax, are also based on the provisions of their respective tax laws, and the amount of tax payable is divided by the corresponding base to calculate the percentage, which is the tax burden rate of the corresponding tax.
Knowing your or your company's tax situation is as important as looking at your own books, which helps you plan your finances wisely and better understand the impact of tax policies on our lives and operations.