but I want to say not every place collect tax every month
Few actually "collect" taxes on a monthly basis, however by accounting standards it's always accounted for on at least
a monthly basis and the money set aside for future tax liability purposes. And that's exactly what happens here. Every month it looks back, saw what your net profit was for the month
, and you pay a percentage of that. That money is then set aside, and in the 2nd week of January your accountants come and tell you whether you've paid too much and they're gonna give you some back or you didn't pay enough into holding and you need to pony up some more to pay off the government for the year.