The NTS lessened the tax burden for small companies struggling with increasing expenses due to the recent oil price hike. A total of 620,000 small companies will benefit from this measure, as the Simplified Expense Rate is raised for companies in 192 industries, up 172 from the previous 20 items. In addition, for companies whose sales are worth over the NTS-designated threshold and that are subject to Standard Expense Rate, the NTS revised the Standard Expense Rate downward to encourage book-keeping and submission of documents. The NTS will also allow these companies to choose their income amount to be filed as explained in the following table.
lang=EN-US style="font-family:Arial,sans-serif font-size:12pt">A company with sales over a certain amount may choose between lang=EN-US style="font-size:12pt mso-bidi-font-family:Arial">① lang=EN-US style="font-family:Arial,sans-serif font-size:12pt"> and lang=EN-US style="font-size:12pt mso-bidi-font-family:Arial">② lang=EN-US style="font-family:Arial,sans-serif font-size:12pt">, whichever is smaller when filing a tax return in May, 2008:
① Income amount = Gross Revenue &ndash Primary Expense &ndash Other Expense
② lang=EN-US style="font-family:Arial,sans-serif font-size:12pt">Income amount = {Gross &ndashRevenue &ndash (Gross Revenue x Simplified Expense Rate)} x Ratio designated by the NTS
lang=EN-US style="font-family:Arial,sans-serif font-size:12pt">*Ratio applied in calculating income accrued for year 2007:
A ratio of 2.0 will apply to companies subject to simplified book-keeping.
A ratio of 2.4 will apply to companies subject to double entry book-keeping.
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