The gap between Personal Income Tax and Income Tax on Windfall Earnings was enormous!
For example, suppose the final net profit from this operation came to 200 million Xia Kingdom yuan, with An Wuyang taking 40% of the profits. That meant an income of 80 million Xia Kingdom yuan.
If he paid the relevant taxes according to Personal Income Tax, he would have to enter the 45% bracket, resulting in a tax payment of roughly 36 million. An Wuyang would be left with less than 44 million.
But if the taxes were paid as Income Tax on Windfall Earnings, he would only need to pay 20%, or 16 million Xia Kingdom yuan. That amounted to saving 20 million in taxes.
As everyone knew, any reduction in tax costs became an increase in net profit!
"It can actually be done this way?" An Wuyang exclaimed in surprise.
"How did you manage it?" An Wuyang asked curiously. How had they changed the tax category?
Zhu Guanghao explained, "It's mainly because of the source of this batch of goods. They were obtained through warehouse treasure hunting, and that kind of source counts as windfall earnings. So in the end, they can be classified under the Income Tax on Windfall Earnings category."
Sun Kairui agreed. "You could say we were lucky!"
So that was how it was!
An Wuyang thought even more highly of them!
He had assumed that Zhu Guanghao and Sun Kairui could really alter tax categories however they pleased. Who would have thought that the rules actually allowed it?
Of course, even when something was permitted by the rules, it was not something just anyone could accomplish.
After all, they were walking a fine line. Depending on how it was calculated, their actions could even be classified as tax evasion if