# I need help for taxes purpose

Algebra

### I need help for taxes purpose

So opening a company in Russia.
Or you pay 6% on revenue or you pay 15% on profit.
From what % of cost is it more interesting to go with the 15%?
Guest

### Re: I need help for taxes purpose

Good night!

C = cost
P = profit
R = revenue
$$R=C+P$$

We have:
(I) 6% on Revenue:
$$6\%\cdot R\Rightarrow 0,94R=0,94(C+P)=R'$$

(II) 15% on Profit:
$$15\%\cdot P\Rightarrow C+0,85P=R'$$

We want 15% on Profit better than 6% on Revenue, right?
So:
$$C+0,85P>0,94C+0,94P\\ C-0,94C>0,94P-0,85P\\ 0,06C>0,09P\\ C>1,5P$$

So, if $$C=1,5P$$:
$$C+P=1,5P+P=2,5P$$

Calculating $$\dfrac{C}{R}=\dfrac{1,5P}{2,5P}=60\%$$

So, if $$C>60\%\cdot R$$ it's more interesting to go with the 15%.

I hope to have helped!

Baltuilhe

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