- Writing a Business Plan
- Financial Statements
- Business Forecasting
- Business Checklist
Income Tax Rate note to the financial statements
This note will tell readers the forecasted rate or percentage at which you used when predicting your company's income tax obligation. In addition, it should summarize your forecasted income tax dollar amount for each year and discuss when payment is scheduled to be made. Below provides an example of an income tax rate note to the financial statements.
Income Tax Rate:
The T-T-T Company is forecasting its income tax obligation at approximately 25% of its net income before taxes. The forecasted income tax obligation for each forecasted business year is shown below.
|Income tax obligation per year||$2,643||$3,547|
Corporate income taxes will be paid in March of the following year. Meaning, income taxes resulting from the December 31, 200X 's net income before taxes will be paid in March of 200Y. Similarly, income taxes resulting from the December 31, 200Y's net income before taxes will be paid in March of 200Z. Payment of income taxes can be seen on the company's forecasted cash flow statements.