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“The bank is not as black as it is painted – how to read financial documents”

Taxes

Contents

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Taxes play a very important role for the economy. This is the most important source of state revenues. They concern different areas of life and have different amounts. They are mandatory, so the government can impose penalties on those who don’t pay them. Each country has its own tax law, so this is an individual issue.

INCOME TAX – CALCULATION

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This is not easy because there are different types of tax systems: linear, proportionate, regressive, and progressive. In addition, there are different percentage thresholds, different tax credits and other deductions in each country that may reduce the total taxable income that will constitute the taxable base.

Certainly, deduct tax-deductible costs, social, health and health contributions paid and tax credits applicable in a given country from the annual gross income. Then choose the appropriate system and the percentage rate of tax. Then you’ll get your tax. After deducting the tax from the basis for its calculation you will receive net income. File an annual tax return. Remember to do it on time and avoid legal consequences.

Finally, compare the amount of tax on the tax advance paid by the employer and:

  • If there is an overpayment – you will receive a tax refund, in the opposite situation you will have to pay the amount due.