Tax Calculation
Tax calculation is the process of determining the amount of tax owed by an individual or business based on applicable tax laws, rates, deductions, and credits. It involves applying mathematical formulas and rules to financial data to compute liabilities for income tax, sales tax, VAT, or other taxes. This concept is fundamental in finance, accounting, and software systems that handle billing, payroll, or e-commerce transactions.
Developers should learn tax calculation when building applications that involve financial transactions, such as e-commerce platforms, payroll systems, or accounting software, to ensure compliance with legal requirements and accurate billing. It's essential for roles in fintech, enterprise resource planning (ERP), or any domain where automated tax handling is required to avoid errors and penalties.