Taxes will be levied at the end of season upon your profit and/or remaining bank balance.
Profit Tax
Profit taxes are calculated based on the net profit you make during a particular season. There are different tax slabs and a percentage of the profit will be levied as taxes.
$ 5,000,000 or below : No Taxes
$ 5,000,001 to $ 10,000,000 : 10 percent
$ 10,000,001 to $ 25,000,000 : 20 percent
$ 25,000,001 to $ 50,000,000 : 30 percent
$ 50,000,001 to $ 100,000,000 : 40 percent
Above $ 100,000,000 : 50 percent
Fortune Tax
Fortune tax is a calculated at 6 percent of your final bank balance above $ 100 million. The amount eligible for fortune tax is taken after the profit taxes are applied on your season's profit.
Sample Calculation
Suppose you have $ 200 million bank balance at the end of the season and your profit for the season was $ 40 million.
The amounts that fall in the profit tax slabs will be:
$ 0 to $ 5,000,000 : $ 0
$ 5,000,001 to $ 10,000,000 : 10 percent of $ 5,000,000 = $ 500,000
$ 10,000,001 to $ 25,000,000 : 20 percent of $ 15,000,000 = $ 3,000,000
$ 25,000,001 to $ 40,000,000 : 30 percent of $ 15,000,000 = $ 4,500,000
The total profit tax you have to pay is $ 500,000 + $ 3,000,000 + $ 4,500,000 = $ 8,000,000
Amount eligible for Fortune tax is $ 200 million - $ 8 million = $ 192 million
You pay fortune tax above $ 100 million only, so fortune tax = 6 percent of $ 92 million = $ 5,520,000
Total Taxes = Profit Tax + Fortune Tax = $ 8,000,000 + $ 5,520,000 = $ 13,520,000