diff --git a/app/Http/Controllers/Common/Items.php b/app/Http/Controllers/Common/Items.php
index 3c3db8559..6e7f8a4e3 100644
--- a/app/Http/Controllers/Common/Items.php
+++ b/app/Http/Controllers/Common/Items.php
@@ -372,7 +372,7 @@ class Items extends Controller
                             foreach ($inclusives as $inclusive) {
                                 $item_sub_and_tax_total = $item_sub_total + $item_tax_total;
 
-                                $item_tax_total = $item_sub_and_tax_total - (($item_sub_and_tax_total * (100 - $inclusive->rate)) / 100);
+                                $item_tax_total = $item_sub_and_tax_total - ($item_sub_and_tax_total / (1 + ($inclusive->rate / 100)));
 
                                 $item_sub_total = $item_sub_and_tax_total - $item_tax_total;
 
@@ -382,7 +382,7 @@ class Items extends Controller
                             foreach ($inclusives as $inclusive) {
                                 $item_sub_and_tax_total = $item_discount_total + $item_tax_total;
 
-                                $item_tax_total = $item_sub_and_tax_total - (($item_sub_and_tax_total * (100 - $inclusive->rate)) / 100);
+                                $item_tax_total = $item_sub_and_tax_total - ($item_sub_and_tax_total / (1 + ($inclusive->rate / 100)));
 
                                 $item_sub_total = $item_sub_and_tax_total - $item_tax_total;
 
diff --git a/app/Jobs/Expense/CreateBillItem.php b/app/Jobs/Expense/CreateBillItem.php
index 1826fa2cc..cc83823b3 100644
--- a/app/Jobs/Expense/CreateBillItem.php
+++ b/app/Jobs/Expense/CreateBillItem.php
@@ -117,7 +117,7 @@ class CreateBillItem
                     foreach ($inclusives as $inclusive) {
                         $item_sub_and_tax_total = $item_amount + $item_tax_total;
 
-                        $item_tax_total = $item_sub_and_tax_total - (($item_sub_and_tax_total * (100 - $inclusive->rate)) / 100);
+                        $item_tax_total = $item_sub_and_tax_total - ($item_sub_and_tax_total / (1 + ($inclusive->rate / 100)));
 
                         $item_sub_total = $item_sub_and_tax_total - $item_tax_total;
 
diff --git a/app/Jobs/Income/CreateInvoiceItem.php b/app/Jobs/Income/CreateInvoiceItem.php
index 6e6575dff..3478baff1 100644
--- a/app/Jobs/Income/CreateInvoiceItem.php
+++ b/app/Jobs/Income/CreateInvoiceItem.php
@@ -144,7 +144,7 @@ class CreateInvoiceItem
                     foreach ($inclusives as $inclusive) {
                         $item_sub_and_tax_total = $item_amount + $item_tax_total;
 
-                        $item_tax_total = $item_sub_and_tax_total - (($item_sub_and_tax_total * (100 - $inclusive->rate)) / 100);
+                        $item_tax_total = $item_sub_and_tax_total - ($item_sub_and_tax_total / (1 + ($inclusive->rate / 100)));
 
                         $item_sub_total = $item_sub_and_tax_total - $item_tax_total;