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i am not in the US but "many" countries around the world use something called "MAT" or minimum alternate tax, wherein if you calculate taxes which is like zero
by 2Gkashmiri 6y ago
i am not in the US but "many" countries around the world use something called "MAT" or minimum alternate tax, wherein if you calculate taxes which is like zero or even a percentage lower than the limits mentioned, you are forced to pay MAT instead.
forced as in, you can claim a loss and all but you still pay MAT taxes which usually are around 18%.
- cryptofistMonk 6y agoIf you claim a loss what are they taxing, revenue?
- 2Gkashmiri 6y agoyes. the idea of MAT is like you can claim all the "expenses" and the result would be a loss but when MAT is taken up, you get only "certain" expenses meaning you cant just pull expenses out of thin air. you have to prepare an altogether different p&L with only specified expenses and that always results in a profit and you pay taxes on that figure. its like saying to a kid who doesnt want to go to school because his knee is bruised. cry all you want, you will go to school.