Zebra company work coffee import & export company in Ethiopia 2018 budget year transaction are purchase coffee product for birr 2,400,000 including VAT from Sidama coffee farmer association & also additional product purchase from Oromiya coffee farmer association for birr 1,500,000 before VAT & this zebra company import coffee washing machine for birr 600,000 before VAT .the company export coffee to Saudi Arabiya & south Africa birr 4,500,000 & 3,000,000 respectively VAT inclusive. Zebra company also paid salary expense 90,000, advertising expense 80,000, store rent expense 120,000, utility expense 50,000 the company 30% business profit tax payer. 1. Required business profit tax? 2. Calculate net profit? 3. Calculate VAT payable? 4. Calculate direct & indirect tax? Based onCalculate Ethiopian tax system

Business profit tax:
Total Revenue = 4,500,000 (from Saudi Arabia) + 3,000,000 (from South Africa) = 7,500,000
Total Expenses = 2,400,000 (coffee purchase from Sidama) + 1,500,000 (coffee purchase from Oromiya) + 600,000 (coffee washing machine) + 90,000 (salary) + 80,000 (advertising) + 120,000 (store rent) + 50,000 (utility) = 4,840,000
Business Profit = Total Revenue - Total Expenses = 7,500,000 - 4,840,000 = 2,660,000
Business Profit Tax = 30% of Business Profit = 0.3 * 2,660,000 = 798,000 birr

Net Profit:
Net Profit = Business Profit - Business Profit Tax = 2,660,000 - 798,000 = 1,862,000 birr

VAT Payable:
VAT on Coffee Purchase from Sidama = 15% of 2,400,000 = 360,000 birr
VAT on Coffee Purchase from Oromiya = 15% of 1,500,000 = 225,000 birr
Total VAT Payable = 360,000 + 225,000 = 585,000 birr

Direct & Indirect Tax:
Direct Tax = Business Profit Tax = 798,000 birr
Indirect Tax = VAT Payable = 585,000 birr