Status of Income Tax in Other Countries (Income Tax Act,1961)
September 12, 2019
Income Tax in Australia
Income Tax is the most significant and prime source of revenue for the government of Australia within the Australian taxation system. It consists of three main pillars i.e., personal earnings, business earnings, and capital gains. The progressive approach of the tax system is being followed up by Australia, which means that the more you earn, the more tax you need to pay. The tax is imposed by the federal government on the taxable income of individuals and corporations.
Income Tax in America
The progressive approach of the tax system is being followed up by the United States of America, which means that the more you earn, the more tax you need to pay. The Internal Revenue Service (IRS) in the USA is responsible for levy and collection of income tax. The United States tax system is set up on both a federal and state level. Both are altogether separate and each has its own authority to charge taxes. The federal government does not possess any right to interfere with the state taxation. Each state has its own tax system and different from the other states. The U.S. tax system is quite complex in nature.
Income Tax in China
All individuals working in China either Chinese or foreigner are required to pay ‘Individual Income Tax (IIT) on their earnings. IIT is a complicated tax framework. It is a residence – based tax. In order to determine that whether a person is liable to individual income tax, and the extent to which he or she is liable, are
a) whether the person is living in China;
b) in case a person is expatriate, in that case, how long that person is living in China;
c) the source of the income; and
d) who bears the salary cost for this person.
Income Tax in the United Kingdom
Taxes are levied according to the payer’s ability to pay- higher income persons are assumed to be able to pay at higher rates. The major taxes include income taxes, property taxes, capital gains, UK inheritance taxes, and Value Added Taxes. Taxes are the main source of revenue for the government.