- 1 decade agoFavorite Answer
Assisible profit is base on profit before taxation following IRD profit tax requiement to make such adjustment.
Profite tax is calculate @ 17.5% on assisable profit (2007/2008) and
Provision tax for 2008/2009 is calculate on estimated profit @ 16.5%
For example,if your company assisable profit is 480,728.79
Profti tax for the year (480,728 @ 17.5% = 84,127) IRD will cut d.p.
Provision tax for nest year (480,728 @ 16.5% = 79,320)
That's is tax rebate in 2007/2008 @ tax amount 75% celling 25,000
Therefore tax pay for both year will be 84,127 - 25,000 + 79,320 = 138,447Source(s): My exp