🧾 Tax Add & Remove

net → gross · gross → net · any rate · common-rate comparison

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The trap this page exists for is removing tax: taking 6% off a tax-inclusive receipt is not the same as adding 6% and undoing it. From a gross amount the tax inside it is G·t/(1+t), not G·t. On RM106 at 6% the tax is RM6 — subtract 6% of 106 and you get RM5.98 and a reconciliation that never balances.

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Why you cannot "take off" the rate you "put on"

Adding t% multiplies by (1+t); reversing must divide by (1+t), and division is not subtraction. On RM100: add 6% → RM106, and the tax is RM6.00. Take 6% off RM106 → RM99.64 — you have lost 36 sen per hundred and your accounts will not foot. Every GST/SST/VAT receipt you file uses the inclusive formula tax = gross × t/(1+t); that is what the "remove" direction computes, exactly, to the sen.

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