• NP is the total net profit ($) • TR is the net profit tax rate (%) ## How to Calculate Tax on Profit? The following example problems outline how to calculate Tax on Profit. Example Problem #1: 1. First, determine the total net profit ($). In this example, the total net profit ($) is given as 1000. 2. Next, determine the net profit tax rate (%). For this problem, the net profit tax rate (%) is given as 25. 3. Finally, calculate the Tax on Profit using the equation above: ToP = NP * TR/100 The values given above are inserted into the equation below: ToP = 1000 * 25/100 = 250 ($)

Example Problem #2:

The variables needed for this problem are provided below:

total net profit ($) = 50000 net profit tax rate (%) = 16 Entering these values and solving gives: ToP = 50000 * 16/100 = 8000 ($)