Answer to question 1:
There are two type of tax player . Group A tax player and Group 2 tax player.
Group A tax player: is an individual or collective body with complete and appropriate
accounting records audited by a registered auditor or accountant .Also ,any collective body
with capital not less tan mop$1,000,000 or on average having taxable profit for the last
three years of over mop$ 500,000 will be classified as group A taxpayer
Group B tax player : Any other taxpayers not fulfilling such criteria are regarded as Group
B taxpayers.
Answer to question 2:
1. The proceeds from any transaction or operations realized by the taxpayers as a result
of normal or occasional , primary or secondary activities will be considered profit or
gains from operations, especially the followings:
(a) From the primary operations ,such as earnings from sale of any goods or services ,
bonus ,or discounts received ,commission and brokerages
(b) From the secondary or complementary operations including proceeds obtained
from performing services to employees
(c) From the earnings , assets or valuables maintained as reserves ,except those
originated from public debt
(d) From the operations of a financial nature
(e) From the income obtained from holding office in other companies.
(f) From the income obtained from rights or the like;
(g) From performing services of a scientific or technical nature
2. The value of constructions ,equipment and other assets of investment produced and
used by the firm itself , is considered to be profits or gains , when their respective
related expenses are also treated as costs of operation.
Answer to question 3:
It is considered to be costs or losses attributable to those operations which support the
realization of taxable profits or gains and maintain productivity, namely the following:
(a) Expenses of the primary ,secondary , or complementary operations related to the
production or acquisition of any goods, assets or services .
(b) Selling and distribution expenses ,such as transportation , advertising and promotional
expenses;
(C) Expenses of a financial nature
(D) Administrative expenses, such as remuneration, allowances, pensions, consumables,
transportation, rent ,legal expenses and insurance ,but excluding optional life
insurance.
(E) Expenses for research and development ,investigation and consultancy
(F) Tax and related expenses subject to the taxpayers ,without prejudicing Article 29line
(b)
(G) Depreciation and amortization expenses
(H) Provision
(I) Indemnity resulting from uninsurable risk