Definiton of Business Terms

Definitions
Establishment

Defined as a business or organisation unit engaged in one activity and operating in a single location.

Operating Receipts

Refers to the income earned from business operations, i.e. income from sales of goods, services rendered, commissions and rental of premises, machinery and equipment.

It excludes additional registration fee and certificates of entitlement for motor vehicles and motorcycles as well as betting, sweepstakes & private lottery duties.

For local branches of foreign airlines and foreign shipping lines, operating receipts refers to the reimbursement from their head offices for the operating expenditure they incurred.

Operating Expenditure

Refers to all current expenses (except capital expenditure) connected to the business operations such as purchases of goods and services and remuneration. It includes depreciation and adjustment for changes in stocks and work-in-progress.

It excludes additional registration fee and certificates of entitlement for motor vehicles and motorcycles as well as betting, sweepstakes & private lottery duties.

For local branches of foreign airlines and foreign shipping lines, operating expenditure refers only to expenses incurred by the branch offices in providing support services to their head offices (i.e. foreign airlines and foreign shipping lines) and expenses paid by them on behalf of their head offices.

Operating Surplus

Refers to the amount of operating receipts less operating expenditure plus depreciation of fixed assets. For non-profit organisations (i.e. entities which cannot distribute any surplus made to their shareholders) which mainly rely on funds (such as grants and donations) other than receipts from sales of goods and services rendered to cover their operating expenditure, their operating surplus refers only to depreciation of fixed assets.

Value Added (At Basic Price)

Comprises operating surplus, remuneration and taxes (less subsidies) on production.