1 / 8

Local taxes

Local taxes. Direct taxes (no ability to be avoided) 1- income taxes 2- property taxes Indirect taxes (can be avoided in some cases) 1- customs taxes 2- sales taxes (the same as VAT 14.5%). Income Taxes. Income: includes both taxable and nontaxable types of income .

imogene-pennington
Download Presentation

Local taxes

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Local taxes Direct taxes (no ability to be avoided) 1- income taxes 2- property taxes Indirect taxes (can be avoided in some cases) 1- customs taxes 2- sales taxes (the same as VAT 14.5%)

  2. Income Taxes Income: includes both taxable and nontaxable types of income . -This definition includes all income that belongs to the taxpayer. -Gross income is more specific term. -Items of gross income are included in computation of taxable income. - Taxable income is a net number and is the tax base. Tax = Tax base X Tax rate.

  3. Deductions: -Deductions are amounts that tax law specifically allows as subtractions from gross income. -The rule is that an item may not be deducted unless the tax law specifically permits it. (article:8) -Deductions are characterized as expenses, losses, and exemptions. -An expense is a current period expenditure that is incurred to earn income. -Deductions for expenses are limited to those incurred in a trade or business in an income-producing activity. (article:8) “artificial person” And certain expenses that the law allowed to deducted it for individuals called exemptions andto determine their taxable incomes. (article:10)

  4. Assessment income Tax Every taxpayer must hold (work with) regular accounting documents to keep debit and credit tax payments and make the adjustment end of the year. Palestinian income tax system is based on (self assessment) which requires taxpayers to report and pay their taxes correctly. (article:15 & 17)

  5. Income defined Income “broadly Defined” (includes income from all resources both taxable & nontaxable income) Minus: excluded income(article:6 & 7) Equals: gross income Minus: deduction and exemptions Equals: taxable income * tax rate (from tax law) Equals: income tax

  6. Case The income of Ali company= 250,000$ ,and the total salaries = 40,000$ Required: 1- calculate income tax ? -assume income tax rate = 15%.

  7. Answer taxable income= 250,000- 40,000= 210,000 Income tax = 210,000*15%= 31,500

  8. Look into articles no:(1,2,3,4,5,10) in Palestinian Income tax law

More Related