What is Estimated Tax?

Tax forecasting methods refer to the basic technical methods and working methods used in tax forecasting. There are many tax forecasting methods, which can be generally classified into two categories: First, "investigation research forecasting method" or "qualitative forecasting method", which means that tax forecasters can predict taxes, The methods of tax source, tax administration, and tax system development trends; the second is the "mathematical forecasting method" or "quantitative forecasting method", which refers to a method that uses mathematical methods to predict the development trend of taxes, tax sources, and tax administration based on systematic and comprehensive historical data. Specifically, it can be divided into two types: "time series analysis and prediction method" and "causal analysis and prediction method". The former refers to a method of analysing or extending various historical data of prediction objects in a chronological order according to the development process, direction and trend reflected in the time series. It is also called "trend extrapolation". Among these methods, the more commonly used methods of tax forecasting are "segmental averaging method", "least square method", "moving average method", and "exponential smoothing method". The latter refers to a method that starts from analyzing the causal relationship between the predicted object and related factors, and predicts the state of the related factors when the related factors are in a certain change in the future. Of these methods, the more commonly used method of tax forecasting is the "regression forecasting method". ^[1]