Having allowed for all such expenses...
Having allowed for all such expenses, he should set aside 20% on the net profit and pay it in khums. * Could you give me an example? - Suppose at the end of the year, you own ten thousand Dinars in cash and twenty thousand Dinars in merchandise, making a total of 30,000 Dinars. And suppose you started the year with a capital of 15,000 Dinars. Expenses arising from trading totalled 1,000 Dinars and personal and family expenses totalled 4,000 Dinars.
Thus, your net profit, after deducting these expenses, shall be 10,000 Dinars, i.e. 30,000 - 20,000 = 10,000 on which khums should be paid thus: 10,000 @ 20% = 2,000 Dinars * On which date should I start calculating profits, so that I can pay tax after the lapse of one year? - From the date you make the profit till the lapse of one full year, provided that you did not use any of the profit for food, drink, and the like.
If you make your living of a profession or a salary, you fix your tax year from the date you started earning income. * If I bought clothes for me, but did not wear them for one year, do I have to pay khums on them? - Yes, you have to pay khums on the price of the clothes. So do the owners of any household effects or provisions that were not used during the whole year. * Do I take it that whatever is left of personal or domestic goods and provisions, i.e not used or consumed, etc.
should be liable for khums tax? - Yes, at the appointed date of your tax year, you should carry out an inventory control of all excess goods and provisions, and set aside its fifth, either in kind or the value thereof. * When I carry out the evaluation of such items, do I have to take into account the price when they were bought or the current market value? - Rather, their current market value. * Suppose I did not pay khums on a particular item on which khums tax had to be paid?