Should I revisit my product pricing because of corporate tax?
Should I revisit my product pricing because of corporate tax?
Corporate tax at 9% is calculated on net profit, not sales, so it shouldn't directly force you to change your selling price just because the tax exists. But if your margin is already thin (as in some retail), that 9% takes a real bite out of what would have reached your bottom line, which makes it worth revisiting your cost structure and pricing to preserve the net profit level you had planned for before tax.
The problem is that many business owners price based on pre-tax profit, then get surprised that what actually lands in net is lower than planned. At RASEEKH, we help you build a pricing model that accounts for the real tax impact on your net profit, not just the gross margin before any deductions.