Castaway offers you the option to change your Project's Income Tax Method to either Exempt, Calculated, or Manual Entry. If your Income Tax Method is anything but Exempt, the Taxable Income Report is a great tool for you to review your taxable accounts and reconcile your Income Tax Expense.


1. Accessing the Taxable Income Report

You can access the Taxable Income Report by going to Analysis > Report > Reconciliations > Taxable Income. 

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2. Taxable Income Report Layout

The Taxable Income Report is structured by taking all the Assessable Income less any Deductible Expenses which returns the total Taxable Income. The Tax Expense is then calculated by applying the Project's Income Tax Rate.


3. Element Settings

By default, the Project's Income Tax Rate is set to 25% and every new Sales and Expense element created has its Taxable Income Method set to Automatically calculate for you. If upon your review of the report, you find that the Tax Expense is not what you'd expect, you need to investigate the settings applied. 


Project's Income Tax Rate

To change the Project's Income Tax Rate, go to Forecast > Element Settings > Income Tax (in the P&L). Within the Tax Expense section, you can find and adjust the Tax Rate Type and Fixed Rate % settings to modify the Income Tax Rate of your Project. You can amend how the Tax Expense is calculated by changing any one of those settings. 



Element's Taxable Income Method

There are 3 options to choose from when determining the element (or account's) Taxable Income Method:

  1. Manual Entry: Used to enter the dollar value of Sales that is taxable and the dollar value of Sales that is projected to be Bad Debt. If the element is not to be taxed i.e. not to be included in the Taxable Income Report, leave the data entry blank
  2. Automatic: Have Castaway automatically take 100% of the sales to be taxed
  3. % of Revenue: Set the % of revenue to be taxed

To change the element's Taxable Income Method, go to Forecast > Element Settings > select the individual element and adjust the setting accordingly.