answersLogoWhite

0

UB tax, or Unrelated Business Income Tax, is a tax imposed on the unrelated business income generated by tax-exempt organizations, such as charities or educational institutions. This tax applies when these organizations engage in activities that are not directly related to their primary exempt purpose. The goal of the UB tax is to level the playing field between tax-exempt entities and for-profit businesses, ensuring that income from unrelated business activities is taxed similarly to that of taxable entities. Organizations must report this income and pay taxes on it if it exceeds a certain threshold.

User Avatar

AnswerBot

3w ago

What else can I help you with?