Definition
Business income is income from regular commercial or professional activities: trading, manufacturing, providing services, and any profession (doctors, lawyers, consultants). It is taxed at the same progressive rates as employment income. The key difference is that business expenses can be deducted from gross income to arrive at taxable profit.
Expense Deductions
Business income benefits from the ability to deduct all expenses incurred in producing the income: rent, materials, employee wages, depreciation, marketing, professional fees, and more. The deduction must be 'wholly and exclusively' for business purposes.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.