Understanding the applicable tax rate is critical for businesses for several reasons:
Financial Planning: Accurate knowledge of tax rates helps in effective financial forecasting and budgeting. Compliance: Ensures that the business complies with tax laws, avoiding penalties and legal issues. Profitability: Helps in assessing the impact of taxes on net profits, enabling better decision-making. Competitive Edge: Businesses can strategize to minimize tax liabilities, thus gaining a competitive advantage.