Is the tax amount in the project estimate calculated by multiplying the sum of direct costs and indirect costs by the tax rate?
Thread Content
Is the tax amount in the project estimate calculated by multiplying the sum of direct costs and indirect costs by the tax rate? Is it just the direct cost multiplied by the tax rate? ? Why isn’t there an item for taxes in the project estimate? Looking forward to your advice
Tax = (Direct project costs + Comprehensive expenses + Profit) x Tax rate
May I ask what exactly the comprehensive costs include? How is profit generally determined?
The total cost includes: other direct costs + on-site expenses + indirect costs. Other direct costs include: additional costs for construction during the rainy winter season, costs for using production tools/equipment, inspection and testing fees, costs for site positioning and cleanup, costs associated with the relocation of materials/finished products, additional fees for night-time work, and training costs for special projects. On-site expenses include: temporary facility costs and on-site management fees. Indirect costs include those that are not directly used for the project but still arise as part of the organization’s management activities, such as management expenses and financial expenses.
According to the financial reports of several listed engineering companies, the average profit margin on EPC projects is 16%.
The categories used by the household I found are as follows: construction investment (including capital expenditure on fixed assets – covering project costs and other expenses related to fixed assets, investment in intangible assets, investment in other types of assets, and reserve funds), excluding loan interest during the construction period as well as working capital for startup purposes
It seems that the other direct costs you mentioned should be partly included in the installation costs and partly in other project expenses. Do you have any specific template for such a list? ? I’m not sure how the rates and such are determined; I would appreciate some guidance!