Taxes & Audits
Taxes & Audits
Every profitable enterprise must navigate corporate taxation. Corporate taxes are assessed on net operating profits and settled daily at midnight. Strategic tax planning, Conglomerate alliance perks, asset write-offs, and tactical boosts allow ambitious CEOs to minimize tax liabilities.
1. Daily Midnight Tax Settlement (00:00 CET)
Unlike operational upkeep which accrues per turn, corporate tax is not processed every turn cycle. Instead, tax liability is calculated continuously on your net profit and is settled once per day at 00:00 (midnight) CET via the daily system cron.
2. Progressive Tax Brackets (Standard Users vs Donators)
Tax rates scale progressively based on your corporate net profits. Donator tier (Tier 2+) members benefit from significantly wider tax brackets, allowing higher profit accumulation at lower tax rates:
| Tax Bracket | Standard User Net Profit Range | Donator Tier (Tier 2+) Net Profit Range | Marginal Tax Rate |
|---|---|---|---|
| Bracket 1 | €0 - €100,000 | €0 - €250,000 | 0% (Tax Free) |
| Bracket 2 | €100,000 - €250,000 | €250,000 - €500,000 | 10% |
| Bracket 3 | €250,000 - €500,000 | €500,000 - €1,000,000 | 20% |
| Bracket 4 | €500,000 - €1,000,000 | €1,000,000 - €5,000,000 | 30% |
| Bracket 5 | €1,000,000 - €5,000,000 | €5,000,000 - €20,000,000 | 40% |
| Bracket 6 | €5,000,000 - €20,000,000 | €20,000,000 - €50,000,000 | 50% |
| Bracket 7 | €20,000,000 - €100,000,000 | €50,000,000 - €250,000,000 | 60% |
| Bracket 8 | €100,000,000 - €500,000,000 | €250,000,000 - €1,000,000,000 | 70% |
| Bracket 9 | €500,000,000 - €5,000,000,000 | €1,000,000,000 - €10,000,000,000 | 80% |
| Bracket 10 | €5,000,000,000+ | €10,000,000,000+ | 90% |
3. Tax Deductions, Asset Write-Offs & Tax Prepayments
Taxable corporate income is determined after deducting eligible operational expenses and asset depreciation:
- Operating Expense Deductions: Industrial facility maintenance, employee wages, warehouse upkeep fees, transport costs, and bank loan interest payments are fully tax-deductible expenses.
- Asset Write-Offs (Afschrijvingen): Investing in capital assets generates ongoing tax-deductible write-offs. Over their operational lifespan, up to 75% of residual asset value can be written off, providing substantial corporate tax shelter. You can monitor active write-offs on your Finance Dashboard (see the Corporate Finance & Analytics Guide).
- Tax Advance Prepayments: Ambitious CEOs can deposit advance tax prepayments under the Tax Prepayment tab on the Commercial Bank page. Prepayments act as a liquidity buffer during midnight settlements to prevent unexpected overdrafts (see the Banking & Bonds Guide).
4. Conglomerate Alliance Tax Shield & Accounting Department
Belonging to a Conglomerate alliance grants additional tax mitigation for all member corporations:
- Corporate Accounting Department: When your alliance unlocks the Accounting Department (requires Alliance HQ Level 6), members receive an active tax discount.
- Discount Scaling: The alliance tax shield grants 2% tax reduction per Accounting Department level (up to a 20% total tax discount at Level 5).
5. Special Tax Events & Tactical Boosts
- Tax Free Friday: Every Friday (and on the Businessgame Anniversary, October 10th), corporate tax is completely waived (0% tax rate). 100% of daily operating profit is retained by your corporation!
- FTA Tax Shield Boost: Players can activate the FTA Tax Shield Boost via the Coins Page to temporarily shield 25% of corporate profits from tax assessment.