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Please , what is the full meaning of PCTCT?
Also, from your example on Tracy . Please, did you add back the depreciation figure of $1000 to each year. I was thinking that is only allowed when performing statement of cash flow?
I have seen so many questions where they always add back depreciation figure so i do not understand the concept why and when to always add back depreciation figure like you just dîd after watching your videos.
Hi,
It is profits chargeable to corporation tax, and is the tax adjusted profits to which the tax rate is applied to calculate the tax due for the year.
Depreciation is not allowed as a deducting for tax purposes and is replaced by a tax deprecation, so therefore it is added back to PBT. Don’t worry about it too much though as it is not examined in FR.
Thanks
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