Public finance
This article is part of the series: Finance and Taxation
Taxation
Income tax  ·  Payroll tax CGT ·  Stamp duty  ·  LVT Sales tax  ·  VAT  ·  Flat tax Tax, tariff and trade Tax haven
Tax incidence
Tax rate  ·   Proportional tax Progressive tax  ·   Regressive tax Tax advantage
Taxation by country Australia • British Virgin Islands Canada • China • Colombia France • Germany • Hong Kong India • Indonesia • Ireland Netherlands • New Zealand Peru • Russia • Singapore Tanzania • United Kingdom United States • European Union  v • d • e  Tax rates around the world Tax revenue as % of GDP
Economic policy
Monetary policy Central bank  ·   Money supply Gold standard
Fiscal policy Spending  ·   Deficit  ·   Debt
Policy-mix
Trade policy Tariff  ·   Trade agreement
Finance
Financial market Financial market participants Corporate  ·   Personal Public  ·   Regulation
Banking
Fractional-reserve Full-reserve  ·   Free banking Islamic
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An income tax is a tax levied on the financial income of persons, corporations, or other legal entities. Public finance is a field of economics concerned with paying for collective or governmental activities and with the administration and design of those activities The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated Payroll tax generally refers to two kinds of taxes: Taxes which Employers are required to withhold from Employees Pay, also known as Withholding A capital gains tax (abbreviated CGT) is a Tax charged on Capital gains the profit realized on the sale of a non-inventory Asset that was purchased Stamp duty is a form of Tax that is levied on documents Historically a physical stamp (a Tax stamp) had to be attached to or impressed upon the document to denote Land value taxation (LVT (or site value taxation) is an Ad valorem tax where only the value of land itself is taxed A sales tax is a Consumption tax charged at the Point of purchase for certain goods and services Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. A flat tax (short for flat rate tax is a Tax system with a constant tax rate The tax tariff and trade laws of a political region State or Trade bloc determine which forms of consumption and production tend to be encouraged A tax haven is a place where certain Taxes are levied at a low rate or not at all In Economics, tax incidence is the analysis of the effect of a particular Tax on the distribution of economic welfare. In a Tax system and in Economics, the tax rate describes the burden Ratio (usually expressed as a Percentage) at which a business or person is A proportional tax is a Tax imposed so that the Tax rate is fixed as the amount subject to taxation increases A progressive tax is a Tax imposed so that the Tax rate increases as the amount subject to taxation increases A regressive tax is a Tax imposed in such a manner that the Tax rate decreases as the amount subject to taxation increases Tax advantage refers to the economic bonus which applies to certain accounts or Investments that are by Statute, tax-reduced tax-deferred or tax-free Personal income taxes See also Income tax in Australia Only the federal government imposes income taxes on individuals and this is the most significant source of Taxation in the British Virgin Islands is relatively simple by comparative standards photocopies of all of the tax laws of the British Virgin Islands would together amount to about 200 The level of Taxation in Canada is average among Organisation for Economic Co-operation and Development (OECD countries Taxes provide the most important revenue source for the Government of the People's Republic of China. See Government of Colombia for a wider perspective of Colombian government See Government of France for a wider perspective of French government Taxes in Germany —being a Federal Republic —are levied by the federation ( Bund) the States ( Länder) as well as the HK Inland Revenue Ordinance Cap112 is one of Hong Kong's Ordinances Taxes in India are levied by the Central Government and the State Governments This article ls with Taxation in Indonesia or pajak. Definitions "Pajak" in Indonesian for Tax and taxes whereas " Perpajakan The system of Taxation in Ireland is broadly similar to the system of Taxation in the United Kingdom. The Netherlands has a rich history dealing with taxation predating the Romanic period. Taxation in New Zealand is collected at a national level by the Inland Revenue Department (IRD on behalf of the Government of New Zealand. The Income tax in Peru is collected by the Superintendencia Nacional de Administración Tributaria, best known as SUNAT. The Russian Tax Code is the primary tax law for the Russian Federation. Individual income tax in Singapore forms part of two main sources of Income tax, the other being Corporate taxes on companies In Tanzania the Income Tax Act 2004 came into effect in July 2004 Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. Comparison of Tax Rates around the world is a difficult and somewhat subjective enterprise This table lists countries by total 2005 Tax revenues (federal state and local as a percentage of GDP (Gross Domestic Product Economic policy refers to the actions that Governments take in the economic field. Monetary policy is the process by which the Government, Central bank, or monetary authority of a country controls (i the Supply of Money, A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states In Economics, money supply, or money stock, is the total amount of money available in an Economy at a particular point in time The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set fixed quantities of Gold Fiscal policy, taking the scope of Budgetary policy, refers to government policy that attempts to influence the direction of the economy through changes in government taxes Government spending or government expenditure is classified by economists into three main types A budget deficit occurs when an Entity (often a Government) spends more Money than it takes in Government debt (also known as public debt or national debt) is Money (or credit) owed by any level of government either Central government Trade is the willing exchange of goods, services, or both Trade is also called Commerce. For other uses of this word see Tariff (disambiguation. A tariff is a tax imposed on goods when they are moved across a political boundary A trade pact is a wide ranging Tax tariff and trade pact that often includes Investment guarantees The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated In Economics, a financial market is a mechanism that allows people to easily buy and sell ( Trade) financial Securities (such as stocks and bonds There are two basic financial market participant categories Investor vs Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Personal finance is the application of the principles of Finance to the monetary decisions of an individual or family unit Public finance is a field of economics concerned with paying for collective or governmental activities and with the administration and design of those activities Financial regulations are a form of Regulation or supervision which subjects Financial institutions to certain requirements restrictions and guidelines aiming to A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money Fractional-reserve banking is the banking practice in which Banks keep only a fraction of the value of their Bank notes and demand deposits in reserve Full-reserve banking is the Banking practice in which the full amount of each depositor's funds are available in reserve at the bank when each depositor Free banking is a theory of Banking in which commercial banks and market forces control the provision of banking services Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law ( Sharia) principles and guided by Islamic economics Income, refers to consumption opportunity gained by an entity within a specified time frame which is generally expressed in monetary terms Various income tax systems exist, with varying degrees of tax incidence. In Economics, tax incidence is the analysis of the effect of a particular Tax on the distribution of economic welfare. Income taxation can be progressive, proportional, or regressive. A progressive tax is a Tax imposed so that the Tax rate increases as the amount subject to taxation increases A flat tax (short for flat rate tax is a Tax system with a constant tax rate A regressive tax is a Tax imposed in such a manner that the Tax rate decreases as the amount subject to taxation increases When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Corporate tax refers to a Tax levied by various jurisdictions on the Profits made by companies or associations. Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs).

Principles

The "tax net" refers to the types of payment that are taxed, which included personal earnings (wages), capital gains, and business income. A wage is a compensation workers receive in exchange for their labor. The rates for different types of income may vary and some may not be taxed at all. Capital gains may be taxed when realized (e. g. when shares are sold) or when incurred (e. g. when shares appreciate in value). Business income may only be taxed if it is significant or based on the manner in which it is paid. Some types of income, such as interest on bank savings, may be considered as personal earnings (similar to wages) or as a realized property gain (similar to selling shares). In some tax systems, personal earnings may be strictly defined where labor, skill, or investment is required (e. g. wages); in others, they may be defined broadly to include windfalls (e. g. gambling wins).

Tax rates may be progressive, regressive, or flat. A progressive tax taxes differentially based on how much has been earned. For example, the first $10,000 in earnings may be taxed at 5%, the next $10,000 at 10%, and any more income at 20%. Alternatively, a flat tax taxes all earnings at the same rate. A regressive income tax may tax income up to a certain amount, such as taxing only the first $90,000 earned. A tax system may use different taxation methods for different types of income. However, the idea of a progressive income tax has garnered support from economists and political scientists of many different ideologies, from Adam Smith in The Wealth of Nations^[1] to Karl Marx in The Communist Manifesto. An ideology is a set of beliefs aims and Ideas especially in politics Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. An Inquiry into the Nature and Causes of the Wealth of Nations is the Magnum opus of the Scottish economist Adam Smith. Manifesto of the Communist Party ( often referred to as The Communist Manifesto, was first published on February 21, 1848, and is ^[2]

Personal income tax is often collected on a pay-as-you-earn basis, with small corrections made soon after the end of the tax year. For other uses see Paye (disambiguation PAYE ( Pay As You-Earn) is an amount collected by Employers on behalf of the government A fiscal year (or financial year, or sometimes budget year) is a period used for calculating annual ("yearly" Financial statements in Businesses These corrections take one of two forms: payments to the government, for taxpayers who have not paid enough during the tax year; and tax refunds from the government for those who have overpaid. A tax refund or tax rebate is a refund on Taxes when the tax liability is less than the taxes paid Income tax systems will often have deductions available that lessen the total tax liability by reducing total taxable income. They may allow losses from one type of income to be counted against another. For example, a loss on the stock market may be deducted against taxes paid on wages. Other tax systems may isolate the loss, such that business losses can only be deducted against business tax by carrying forward the loss to later tax years.

History

The concept of taxing income is a modern innovation and presupposes several things: a money economy, reasonably accurate accounts, a common understanding of receipts, expenses and profits, and an orderly society with reliable records. Money is anything that is generally accepted as Payment for Goods and services and repayment of Debts. An economy is the realized social system of production exchange distribution and consumption of goods and services of a country or other area Financial accountancy (or financial accounting) is the field of Accountancy concerned with the preparation of Financial statements for decision makers For most of the history of civilization, these preconditions did not exist, and taxes were based on other factors. A Civilization is a society in which large numbers of people share a variety of common elements Taxes on wealth, social position, and ownership of the means of production (typically land and slaves) were all common. Wealth derives from the old English word "weal" which means "well-being Means Of Production is a compilation of Aim 's early 12" and EP releases recorded between 1995 and 1998 In the Common law, real property (or realty) refers to one of the two main classes of Property, the other class being Personal property ( Slavery is a social-economic system under which certain persons — known as slaves — are deprived of personal freedom and compelled to perform labour or services Practices such as tithing, or an offering of firstfruits, existed from ancient times, and can be regarded as a precursor of the income tax, but they lacked precision and certainly were not based on a concept of net increase. A tithe (from Old English teogoþa "tenth" is a one-tenth part of something paid as a (usually voluntary contribution or as a Tax or levy

In the year 10, Emperor Wang Mang of China instituted an unprecedented tax -- the income tax -- at the rate of 10 percent of profits, for professionals and skilled labor. Wang Mang ( (45 BC&ndashOctober 6 23 Courtesy name Jujun (巨君 was a Han Dynasty official who seized the throne from the Liu family China ( Wade-Giles ( Mandarin) Chung¹kuo² is a cultural region, an ancient Civilization, and depending on perspective a National (Previously, all Chinese taxes were either head tax or property tax. ) A true income tax was first implemented in Britain by William Pitt the Younger in his budget of December 1798 to pay for weapons and equipment in preparation for the Napoleonic wars. The Kingdom of Great Britain, also known as the United Kingdom of Great Britain, was a State in northwest Europe, in existence from 1707 to 1800 William Pitt the Younger (28 May 1759 &ndash 23 January 1806 was a British politician of the late eighteenth and early nineteenth centuries. Year 1798 ( MDCCXCVIII) was a Common year starting on Monday (link will display the full calendar of the Gregorian calendar (or a The Napoleonic Wars (1803-1815 involved Napoleon's French Empire and a shifting set of European allies and opposing coalitions Pitt's new graduated income tax began at a levy of 2d in the pound (0. A progressive tax is a Tax imposed so that the Tax rate increases as the amount subject to taxation increases The Pound Sterling ( symbol £; ISO code: GBP) subdivided into 100 pence (singular penny) is the Currency 8333%) on incomes over £60 and increased up to a maximum of 2s (10%) on incomes of over £200. The shilling is a unit of Currency used in current and former Commonwealth countries and was continued to be used in countries that left the commonwealth Pitt hoped that the new income tax would raise £10 million but actual receipts for 1799 totalled just over £6 million (see UK income tax history for more information). Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) ^[3] The first United States income tax was imposed in July 1861, 3% of all incomes over 600 dollars (later rescinded in 1872). The United States of America —commonly referred to as the Year 1861 ( MDCCCLXI) was a Common year starting on Tuesday (link will display the full calendar of the Gregorian calendar (or a Common Year 1872 ( MDCCCLXXII) was a Leap year starting on Monday (link will display the full calendar of the Gregorian Calendar (or a Leap year ^[4]

Income tax systems

Income Tax rates by Country based on OECD 2005 data (includes employer payroll tax contributions that some countries impose for programs like social security and health care). Payroll tax generally refers to two kinds of taxes: Taxes which Employers are required to withhold from Employees Pay, also known as Withholding Social security primarily refers to a Social insurance program providing social protection or protection against socially recognized conditions including poverty old Health care is the prevention treatment and management of illness and the preservation of mental health through the services offered by the medical, Nursing ^[5]

Australia

Main article: Income tax in Australia

Since 1942, income tax in Australia has been collected solely by the Federal Government, to the exclusion of the Australian States (see Constitutional basis of taxation in Australia). Broadly Australia levies tax on three sources of income for individual taxpayers personal earnings (for example salary and wages business income and capital gains For a topic outline on this subject see List of basic Australia topics. This article describes the federal government of Australia See Australian governments for other jurisdictions The Commonwealth of Australia is made up of 8 states and territories controlled under a federal system of government The constitutional basis of taxation in Australia is based on a group of powers in the Australian Constitution: sections 51(ii section 90 section 53 section 55 and section Australia uses a system of progressive taxation on personal income that is collected as a pay-as-you-go tax (known as PAYG), a flat rate tax on business income (company tax), and a property tax limited to realised capital gains. Total personal income is defined by the United States ' Bureau of Economic Analysis as income received by persons from all sources Pay-as-you-go is a system for businesses and individuals to pay installments of their expected tax liability on their income from employment business or investment for the current income Australia’s income tax system contains a complex array of deductions and offsets, and is administered by the Australian Taxation Office. The Australian Taxation Office (ATO is the principal revenue collection agency for the Australian Government.

Argentina

Main article: Income tax in Argentina

Income tax in Argentina is collected solely by the Federal Government, to the exclusion of the Argentine Provinces. For a topic outline on this subject see List of basic Argentina topics. The government of Argentina, functioning within the framework of a Federal system, is a presidential representative democratic Republic. Regions See also Geography of Argentina The country is also divided into six or seven regions (seven when The Pampas is divided into the Pampas' plains Argentina uses a system of progressive taxation on personal income that is collected as a deferred tax, a flat rate tax on business income (company tax, 35%), and a property tax limited to realised capital gains. Total personal income is defined by the United States ' Bureau of Economic Analysis as income received by persons from all sources Argentina’s income tax system contains a complex array of deductions and offsets, and is administered by the Administración Federal de Ingresos Públicos (AFIP).

Canada

Main article: Income taxes in Canada

The income tax was first imposed in Canada in 1917 on both individuals and corporations, collected primarily by the Federal Government originally meant to finance Canada's involvement in World War I set at a rate of 4%. Income taxes in Canada constitute the majority of the annual revenues of the Government of Canada, and of the governments of the Provinces of Canada. Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page The Canadian Government, formally Her Majesty's Government in Canada, is the Federal government of Canada. Tax collection agreements enable both the federal and provincial governments to levy income taxes through a single administration and collection agency, called the Canada Revenue Agency. The Canada Revenue Agency (CRA ( Revenue Canada under the Federal Identity Program) a federal agency that administers Tax laws for the Government of The federal government collects personal income taxes on behalf of all provinces except Quebec and collects corporate income taxes on behalf of all provinces except Alberta and Quebec. The provinces and territories of Canada combine to make up the world's second largest country in total area. Quebec (kwɨˈbɛk Alberta (ælˈbɝtə is one of Canada's prairie provinces. It became a province on September 1 1905 Canada has a graduated tax system, whereby the percentage over the "more than" amount goes up. . . . graduated from 15. 25 - 29% (2006). ^[6] These rates, together with provincial income tax rates, federal and provincial surtaxes, and provincial health premium taxes (both also calculated based on income), serve to create a combined top marginal tax rate that can approach 50% in some provinces. In a Tax system and in Economics, the tax rate describes the burden Ratio (usually expressed as a Percentage) at which a business or person is

Denmark

The Danish income tax was introduced in 1903 and is now divided into state tax and local tax. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe Year 1903 ( MCMIII) was a Common year starting on Thursday (link will display calendar of the Gregorian calendar or a Common year starting The state tax is a progressive tax while the local tax is a flat tax.

The local tax varies from municipality to municipality. The highest local tax in 2007 is 26,71 % and the lowest is 20,14 %. Income below DKK 41,000 ($8,000) (2007-level, adjusted annually) is tax exempt. The krone ( sign: kr; code: DKK) is the Currency of Denmark, including the autonomous provinces of Greenland ^[7]

There are three income brackets for the state tax. In 2007 income from DKK 39,500 to DKK 272,600 is taxed at 5,48%, income from DKK 272,600 to DKK 327,200 is taxed at additionally 6% and income above DKK 327,200 is taxed at 15% on top.

All income originating from terms of employment or self-employment are levied a social contribution at 8% before income tax. This contribution is widely regarded as "gross tax". The highest total income tax is therefore 62,28%.

A number of deductions apply. The general rule is that the taxpayer is able to deduct his expenses in acquiring his taxable income. There are many exceptions to this rule though. Employees have very limited possibilities for tax deduction as it is assumed that the employer covers the expenses related to the employee's work. The employer will then be able to deduct most of these expenses from his own taxable income.

France

Main article: Taxation in France

The French income tax is a progressive tax, i. See Government of France for a wider perspective of French government This article is about the country For a topic outline on this subject see List of basic France topics. e. tax is an increasing piecewise linear continuous function of income (excluding various rebates etc. Piecewise linear may refer to Piecewise linear function Piecewise linear manifold In Mathematics, a continuous function is a function for which intuitively small changes in the input result in small changes in the output ). This means that the amount of income earned up to a certain amount t1 is taxed at a rate r1, then the remaining money, up to a certain amount t2 is taxed at a rate r2, etc. The income tax (impôt sur le revenu): 16% of tax revenue. The tax on corporations: 12% of tax revenue.

The French Government has launched the Copernic tax project which unifies the tax paying process. Copernic project is undergoing a major modernisation programme in France that willrecast and upgrade the entire fiscal information system in the country

Germany

Main article: Taxation in Germany

The German income tax is a progressive tax: income below the "existence minimum" (about 8000 EUR/year) is tax-free, higher income is taxed with a marginal tax rate running from 15 % up to 45 % (as of 2008). Taxes in Germany —being a Federal Republic —are levied by the federation ( Bund) the States ( Länder) as well as the In a Tax system and in Economics, the tax rate describes the burden Ratio (usually expressed as a Percentage) at which a business or person is Additionally, earned income is subject to about 40 % of social insurance fees, half of it to be paid by the employer and the other half by the employee. A wage is a compensation workers receive in exchange for their labor.

Guatemala

In Guatemala, the Superintendencia de Administracion Tributaria (SAT) levies tax on personal and corporate income.

Hong Kong

There are three income types earned in Hong Kong that are taxed, but they are not locally referred to as income taxes. Hong Kong ( officially the Hong Kong Special Administrative Region, is a territory located on China 's south coast on the Pearl River Delta, and borders Per Inland Revenue Ordinance Chapter 112 (IRO), these three types are classified into: Profit tax IRO section 14, Salaries tax IRO section 8, and Property tax IRO section 5. HK Inland Revenue Ordinance Cap112 is one of Hong Kong's Ordinances Profit tax in Hong Kong is Direct tax and also classified into Income tax. Salaries tax in the Hong Kong Taxation system is Direct tax and also classified as Income tax. Property tax, or millage tax, is an Ad valorem tax that an owner pays on the value of the property being taxed ^[8]

India

Main article: Income tax in India

India has a three-tier tax structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies^[9]. The Indian Income Tax department is governed by the Central Board for Direct Taxes (CBDT and is part of the Department of Revenue under the Ministry of Finance India is a union of states comprising twenty-eight states and seven union territories. The power to levy taxes and duties is distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The Constitution of India ( Hindi: भारतीय़ संविधान see names in other Indian languages) is the supreme law of India. The main taxes/duties that the Union Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc. ), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc.

Indonesia

Main article: Taxation in Indonesia

The income tax in Indonesia is known as Pajak Penghasilan (PPh) and is considered to be a progressive tax. This article ls with Taxation in Indonesia or pajak. Definitions "Pajak" in Indonesian for Tax and taxes whereas " Perpajakan The Republic of Indonesia ( (Republik Indonesia is a Country in Southeast Asia. The rule governing this taxation is also called pph21.

Iran

Main article: Income tax in Iran

The Islamic Republic of Iran has income taxes. Labour and tax laws in Iran govern the employment and fiscal contributions of people working and living in Iran. For a topic outline on this subject see List of basic Iran topics. The highest tax bracket on profits is 46. 4%.

Italy

Refer to IRPEF (in Italian) for the Italian personal taxation system.

The Italian personal income tax is a progressive tax, i. Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest e. tax is an increasing piecewise affine continuous function of income (excluding various rebates etc. In Mathematics, a continuous function is a function for which intuitively small changes in the input result in small changes in the output ). This means that the amount of income earned up to a certain amount t1 is taxed at a rate r1, then the remaining money, up to a certain amount t2 is taxed at a rate r2, etc.

Japan

Main article: Taxation in Japan

Progressive taxation at the national level that ranges from 5% to 40%. Resident taxes are an additional 10%. ^[10]

Malta

Malta has a progressive individual income tax, ranging from 0% to 35%. Malta, officially the Republic of Malta (Repubblika ta' Malta is a European Microstate, comprising an Archipelago of three islands For single computations, income up to €8,150 is tax free, income between €8,151 and €14,000 is taxed 15%, income between €14,001 and €19,000 is taxed 20% and income above €19,000 is taxed 35%. For joint computations, income up to €11,400 is tax free, income between €11,401 and €20,500 is taxed 15%, income between €20,501 and €28,000 is taxed 20% and income above €28,000 is taxed 35%.

Netherlands

Main article: Income tax in the Netherlands

The Netherlands taxes income on personal income (wages, profits, social security); some business income; and savings and investments. In the Netherlands there is an Income tax, which since 2001 ( Wet inkomstenbelasting 2001) is roughly as follows The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands The tax on personal income is progressive and casts a wide tax net over wages, profits, social security, and pensions. The tax is withheld from wages and can reach a marginal rate of 52%. As an example of the breadth of the tax net, value gains in owner-occupied homes are treated as personal income, even though those gains are not realized (i. e. do not equate to cash in hand). Interest can be deducted as a cost incurred in earning the income. The tax on business income is a flat tax of 25% and only applied to "substantial business interests", which are generally a shareholding of 5%. A flat tax (short for flat rate tax is a Tax system with a constant tax rate A flat tax is paid on savings and investments, even if the gain is not realized.

Peru

Main article: Income tax in Peru

The income tax in Peru is collected by the Superintendencia Nacional de Administración Tributaria (SUNAT). The Income tax in Peru is collected by the Superintendencia Nacional de Administración Tributaria, best known as SUNAT. Peru (Perú Piruw Piruw officially the Republic of Peru ( reˈpuβlika del peˈɾu is a country in western South America. This country uses a system of progressive taxation on personal income, and a flat rate tax on business income.

Poland

Poland has a progressive personal income tax. Poland (Polska officially the Republic of Poland ^[11]. The first 3,013 złotys earned in the year are free of tax, then income lower than 43,405 złotys is taxed at 19%. The złoty (/ˈzwɔtɨ/, plural for numbers ending in 2 3 and 4 (except 12 13 and 14 złote /ˈzwɔtɛ/ plural for all other numbers złotych /ˈzwɔtɨx/ The złoty (/ˈzwɔtɨ/, plural for numbers ending in 2 3 and 4 (except 12 13 and 14 złote /ˈzwɔtɛ/ plural for all other numbers złotych /ˈzwɔtɨx/ Yearly earnings between 43,405 to 85,528 złotys incur 30% tax. The złoty (/ˈzwɔtɨ/, plural for numbers ending in 2 3 and 4 (except 12 13 and 14 złote /ˈzwɔtɛ/ plural for all other numbers złotych /ˈzwɔtɨx/ Top personal income tax rate is paid on earnings above 85,528 Polish złotys (apprx. The złoty (/ˈzwɔtɨ/, plural for numbers ending in 2 3 and 4 (except 12 13 and 14 złote /ˈzwɔtɛ/ plural for all other numbers złotych /ˈzwɔtɨx/ 22,500 euro) per year and is equal to 40%. Please update other articles as well to avoid contradiction within Wikipedia e

Russia

Russia imposes a flat tax of 13% on personal income and 24% on corporate income. Russia (Россия Rossiya) or the Russian Federation ( Rossiyskaya Federatsiya) is a transcontinental Country extending A flat tax (short for flat rate tax is a Tax system with a constant tax rate Several types of income, such as lottery winnings, are taxed at 35%. Dividends are taxed at 9%. Dividends are payments made by a Corporation to its Shareholder members There is a large list income not subject to taxation.

Singapore

Main article: Individual income tax in Singapore

Singapore has a progressive individual income tax,^[12] with taxes ranging from 0% to 20% up to Year of Assessment 2007. Individual income tax in Singapore forms part of two main sources of Income tax, the other being Corporate taxes on companies Singapore The tax net includes employment income, dividends, interests, and rental incomes. ^[12] A range of deductions are available. Singapore also has an income tax on corporations. ^[13]

Sweden

Sweden has a taxation system that combines a direct tax (paid by the employee) with an indirect tax (paid by the employer). "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. The term direct tax has more than one meaning a colloquial meaning and in the United States a constitutional law meaning The term indirect tax has more than one meaning In the colloquial sense an indirect tax (such as Sales tax, Value added tax (VAT or Goods and services In practice, the employer provides the state with both means of taxation, but the employee only sees the direct tax on his declaration form. The compilation of taxes that compose the final income tax (2003): tax on gross income from the employer: 32. 82% (indirect, fixed), pension fee on gross income: 6. 95% (indirect, fixed), municipal tax on gross income less pension tax and a base deduction: ~32% (direct, varies by municipality), state tax on gross income less pension tax and a base deduction: 0%, 20%, or 25% (direct, progressive).

United Kingdom

Main article: Taxation in the United Kingdom

The British income tax system is progressive with a number of bands: 10% (only applies to savings income and from April 2008 does not apply to earnings), 20% basic rate on UK dividends, investment income and income from employment/self employment (was 22% until April 2008), and (in respect of the higher rate band and all income on certain trusts) 32. Taxation in the United Kingdom may involve payments to a minimum of two different levels of government The central government ( Her Majesty's Revenue and Customs) The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 5% on UK dividends and 40% on other sources^[14] There are also a number of untaxed allowances (such as a personal allowance) to which tax bands do not apply. The tax is an annual tax and is reimposed each year in the annual Finance Act. In addition, the UK has a National Insurance contribution based on income. National Insurance (NI is a system of taxes and related Social security benefits in the United Kingdom. Although effectively another form of income tax, credits for payments of this applied to the individual's record which, in turn, will impact on entitlement to welfare and (the level of) state pension payments. Rates are levied on the self employed, the employed, and their respective employers. The United Kingdom also imposes a corporation tax, charged on the profits and chargeable gains of companies. Throughout this article the unqualified term "pound" and the £ symbol refer to the United Kingdom pound. Generally a company is a form of Business organization. The precise definition varies The main rate is 30%, which is levied on taxable income above GBP 1. 5 million, but it will be reduced to 28% in April 2008. Income of £300,000 or less is taxed at 20%. Marginal reliefs exist between the £300,000 and £1,500,000 bands. ^[15]

Under the Scotland Act 1998 , the Scottish Parliament has the power to increase or reduce the basic rate of income tax by three pence in the pound, though not yet exercised. The Scotland Act 1998 (1998 c 46 is an Act of the Parliament of the United Kingdom. The Scottish Parliament ( Scottish Gaelic: Pàrlamaid na h-Alba; Scots: Scottish Pairlament) is the devlolved national unicameral

United States

Main article: Income tax in the United States

The United States imposes an income tax on individuals, corporations, trusts, and certain estates. The The United States of America —commonly referred to as the This tax is imposed on the income event, such as the receipt of wages. Another example of an income event is the realization of a gain on the disposition of property; that is, the appreciation on the value of property is not taxed until that property is sold (i. e. , when the gain is "realized").

The U. S. income tax was first proposed during the War of 1812, but was defeated. The War of 1812 was fought between the United States of America and the British Empire, particularly Great Britain and her North American colonies ^[4] In July 1861, the Congress passed a 3% tax on all net income above $600 a year (about USD 10,000 today). Income taxes were enacted at various times until 1894, but were not imposed after 1895 when an 1894 tax act was found to be unconstitutional. In response, the 16th Amendment was ratified in 1913. The ^[4] Ratification has been unsuccessfully disputed by some tax protesters claiming, among other things, that slight errors in punctuation in the various instruments ratified by the several states invalidates the ratification. The Tax protesters have also made other arguments about the validity of the U. The S. income tax, without success (see Tax protester arguments).

The top marginal tax rate in the U.S. was 67 to 73 percent from 1917 to 1921, then began to fall, reaching a low of 25 percent from 1925 to 1931. The rate was increased to 63 percent in 1932, to 79 percent in 1936, and to 88 percent in 1942. From 1951 to 1963, the top marginal tax rate was 91 percent, and was 70 percent through most of the 1970s. In 1988 it was lowered to 28 percent, but raised in 1993 to 39. 6 percent.

The 2007 individual federal income tax rates are between 10% and 35%, depending on income and family status. People with relatively low incomes may pay no income tax, or may receive earned income tax credits (tax benefits); however, this does not include income based payroll taxes that fund Social Security and Medicare. The Federal Insurance Contributions Act (FICA tax ( is a United States payroll (or employment Tax imposed by the federal government on both employees Social Security, in the United States currently refers to the federal Old-Age Survivors and Disability Insurance ( OASDI) program This article refers to Medicare, a United States health insurance program The Center on Budget and Policy Priorities states that three-fourths of taxpayers pay more in payroll taxes than they do in income taxes. ^[16] IRS data indicate that the wealthiest 5% of taxpayers (ranked by AGI, counting only returns with positive AGI) paid roughly 60% of all income taxes; the bottom 50% of taxpayers account for just 3% of income taxes paid. ^[17]

U. S. state

Main articles: State income tax and State tax levels

Income tax may also be levied by individual U.S. states in addition to the federal income tax. State income tax is an Income tax in the United States that is levied by each individual state. State tax levels indicate both the tax burden and the services a state can afford to provide residents A US state is any one of the fifty subnational entities of the United States of America that share Sovereignty with the federal government The Some states also allow individual cities to impose an additional income tax. Most state and local taxes are deductible expenses for federal tax purposes. Not all states levy an income tax (see State income tax)

Critique of income tax

Critics of income tax systems have argued that they can be extremely complex, requiring detailed record-keeping, lengthy instructions, and complicated schedules, worksheets, and forms. State income tax is an Income tax in the United States that is levied by each individual state. Critics further claim that income tax systems can penalize work, discourage saving and investment, and hinder the competitiveness of business. In common usage saving generally means putting money aside for example by putting money in the bank or investing in a Pension plan Investment or investing is a term with several closely-related meanings in Business management, Finance and Economics, related to saving ^[18] Income taxes are not border-adjustable; meaning the tax component embedded into products via taxes imposed on companies cannot be removed when exported to a foreign country (see Effect of taxes and subsidies on price). Taxes and subsidies have the effect of shifting the quantity and price of goods Taxation systems such as a national sales tax or value added tax remove the tax component when goods are exported and apply the tax component on imports. A sales tax is a Consumption tax charged at the Point of purchase for certain goods and services Value added tax ( VAT) or goods and services tax ( GST) is a consumption Tax levied on value added. ^[19] The principles of an income tax are also argued by critics. Frank Chodorov wrote ". Frank Chodorov (1887–1966 was a US thinker and member of the Old Right, a group of Libertarian ideologists who were Minarchist, Anti-war . . you come up with the fact that it gives the government a prior lien on all the property produced by its subjects. " The government "unashamedly proclaims the doctrine of collectivized wealth.  . . . That which it does not take is a concession. "^[4]

Countries with no personal income tax

See also

Notes

External links

• Tax Policy Analysis, OECD Tax Database - Organisation for Economic Co-operation and Development (OECD)
• Top US Marginal Income Tax Rates, 1913--2003