“Revenue vs. Income – What’s the Difference?”

Income and revenue are often understood as synonymous terms. However, this is a big mistake.

Income is simply the amount of money earned. It can be obtained through employment, investments, or the sale of a car or property.

Revenue is income minus the costs incurred to obtain it, such as taxes, fuel charges, bills, etc. Not every income results in revenue – there are times when the income obtained is less than the costs incurred to obtain it.

We also distinguish between gross and net income.

Gross income is the sum obtained after subtracting the costs of obtaining revenues before taxation.

Net income is the sum obtained after subtracting the costs of obtaining revenues after taxation.

For example, our sole proprietorship generated a profit of 10 thousand Polish zlotys in a given month – this is our income. After subtracting the electricity bill, rent payment, etc., we have 6 thousand zlotys left – this is our gross income. From this amount, we pay a 17% tax, leaving us with 5,395 zlotys in our pocket. This is our net income.


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