Non-Profit
Unrelated Business Income Tax (UBIT)
Accruing tax for income generated from activities not substantially related to the NGO's exempt purpose.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| UBIT Tax Expense | Expense (+) | 1,200.00 | - |
| Income Tax Payable | Liability (+) | - | 1,200.00 |
💡 Accountant's Note
If an NGO runs a profitable coffee shop or parking lot, that specific income is taxable at corporate rates to prevent unfair competition with for-profit businesses.
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