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NIacctgapproach
NIacctgapproach
= GROSS DOMESTIC PRODUCT = GROSS DOMESTIC PRODUCT(at marketprice) = GROSS DOMESTIC PRODUCT(at marketprice)
+ Income received abroad + Income received abroad + Income received abroad
- Income paid abroad - Income paid abroad - Income paid abroad
= GROSS NATIONAL PRODUCT = GROSS NATIONAL PRODUCT (mp) = GROSS NATIONAL PRODUCT (mp)
- Depreciation/capital consumption + Subsidies + Subsidies
= NET NATIONAL PRODUCT - Indirect taxes (tax on expenditure) - Indirect taxes (tax on expenditure)
= NATIONAL INCOME = GROSS NATIONAL PRODUCT (at factor cost) = GROSS NATIONAL PRODUCT (at factor cost)
+ Transfer payment - Depreciation/capital consumption - Depreciation/capital consumption
- Direct tax = NET NATIONAL PRODUCT = NET NATIONAL PRODUCT
- Undistributed profit = NATIONAL INCOME = NATIONAL INCOME
- EPF + Transfer payment + Transfer payment
- SOCSO - Direct tax - Direct tax
- Retained earning - Undistributed profit - Undistributed profit
- Insurance - EPF - EPF
=PERSONAL INCOME - SOCSO - SOCSO
- Personal tax - Retained earning - Retained earning
=DISPOSABLE INCOME - Insurance - Insurance
=PERSONAL INCOME =PERSONAL INCOME
*there is no treatment for market price and - Personal tax - Personal tax
factor cost in income approach. So indirect tax =DISPOSABLE INCOME =DISPOSABLE INCOME
and subsidies are not use in income approach.
Three types of taxes
Indirect tax is tax on goods and services. Direct tax is tax that falls on a company. This Personal tax is tax that falls on an individual.
This tax is deducted (-) to find GNPfc (form tax is deducted (-) to find personal income This tax is deducted (-) to find disposable
market price (mp) to factor cost (fc)). Other (PI) Other names associated with this tax income (DI). Other names associated with
names associated with this tax are such as: are such as: this tax are such as:
Other names for income received and income paid which is used to find GNP
1) Income from abroad
2) Income to abroad
3) Factor income paid to abroad,
4) factor income received from abroad
If the income received and income paid already being deducted, then the name will be among this:
1) Net property income from abroad
2) Net factor payment from abroad
3) Net factor income received from abroad
4) Net factor income earned from abroad