Tax amount is determined by the total quantum of the tax which is determined by the total quantum of tax able income or the value. For instance, income tax is calculated by the formula; Gross income – Deductions and exemptions = income tax payable at the tax rate applicable to this income tier. Employers take issues such as revenue, expenses, and allowable deductions to estimate their share. Also, taxes, such as for sales, are determined in proportion to the amount of the sale, or transactional taxes. Certification and documentation of taxes require a good record of the documentation process and legal provisions governing the computation of the taxes.
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