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Depends who owns the company you spend the $100k with. They'd need to pay 30% tax on their income, leaving a net outlay by the government of $15k (15%) overall
by gordjw 11y ago
Depends who owns the company you spend the $100k with.
They'd need to pay 30% tax on their income, leaving a net outlay by the government of $15k (15%) overall.
- robzyb 11y agoTheir income would be less than the $100k. They would have incurred expenses when they provided the services. I paid $100k, the provider took the $100k and spent $60k. This means they declare $40k income. The company pays $12k tax. The Goverment gives $55k to my hypothetical company.