Tax Question?

[tis]

Originally Posted by DickR

What determines if someone has self-employment income that is subject to the business profits tax? If he has such income, doesn't he in effect have a "business?" And what constitutes the "profit" from that business on which he would owe a tax - does it include income he takes from the business as "salary?"

The BPT is a tax on the PROFITS a business makes after expenses. The BET was instituted really to get professionsals (doctors, lawyers etc.) to pay a tax on their salary. An owner of a business pays BET on his/her salary, so they pay on profits AND their salary. BET is really like an income tax for those who work for themselves.