1 Taxation in Australia, India, Myanmar, Philippines, and Thailand (Southern Asia)
2 How the government collect tax? • Most taxes are collected at the time a transfer is being made -whether it is withholding from a pay check, added to the purchase price of goods at the point of sale, or when a license or permit is issued.
3 Why do citizen pay their tax? (Based in The United States of America) – It is the law. Anyone who receives income, resides in the United States and meets certain requirements is required to file a federal tax return and pay taxes owed.
5 History of tax• The first known system of taxation was in Ancient Egypt around 3000 BC - 2800 BC in the first dynasty of the Old Kingdom.• Early taxation is also described in the Bible. In Genesis (chapter 47, verse 24 - the New International Version)
6 Property Tax• A tax assessed on real estate by the local government. The tax is usually based on the value of the property (including the land) you own.
4R 7• Revenue= government income• Redistribution= transferring wealth from the richer sections of society to poorer sections.• Re-pricing= taxes are levied to address externalities.• Representation= the people in charge of paying taxes and collecting them
8 What are progressive regressive proportional tax? Progressive tax Regressive tax Proportional tax • As income goes • As income goes • As income goes up, the percent of up, the percent of up, the percent of income paid in income paid in income paid in taxes goes up too. taxes goes down. taxes stays the same.
9 Value Added Tax (VAT)• an excise tax based on the value added to a product at each stage of production or distribution: value added is arrived at by subtracting from the total value of the product at the end of each production or distribution stage the value of the goods bought at its inception.
12 Australia tax history• At the end of the nineteenth century each of the six Australian colonies had distinct tax systems, which were almost entirely reliant on customs and excise duties. The design of these tax systems was largely driven by administrative concerns, rather than principles of equity or efficiency. Customs duties were also designed to act as trade barriers between the colonies. One of the significant results of Federation in 1901 was the removal of all duties on goods traded between Australian states.
Australia tax type13 • There are many forms of taxation in Australia. Individuals and companies in Australia may be required to pay taxes or charges to all levels of government: local, state, and federal governments. Taxes are collected to pay for public services and transfer payments (redistribution of economic wealth). • Income taxes are the most significant form of taxation in Australia, and collected by the federal government through the Australian Taxation Office. Australian GST revenue is collected by the Federal government, and then paid to the states under a distribution formula determined by the Commonwealth Grants Commission.
14 Australia Tax rate Tax rates 2011-12 The following rates for 2011-12 apply from 1 July 2011. Taxable income Tax on this income 0 - $6,000 Nil $6,001 - $37,000 15c for each $1 over $6,000 $37,001 - $80,000 $4,650 plus 30c for each $1 over $37,000 $80,001 - $180,000 $17,550 plus 37c for each $1 over $80,000 $180,001 and over $54,550 plus 45c for each $1 over $180,000The above rates do not include the Flood levyThe above rates do not include the Medicare levy of 1.5%
16 Burma tax history• The Burmese income tax was passed in 1974. From that point on, the income tax has covered state- controlled enterprises, cooperative societies (such as agricultural societies), foreign investment, personal salaries, foreigners (those in the service of a foreign firm, for example), nonresident citizen earnings and all partnerships with the above. Because Burma is a highly unstable country seemingly endlessly at war with its ethnic minority groups, taxes can be hard to collect. Therefore, the code was made as simple as possible.
17 Myanmar tax type• Taxes levied on domestic production and public consumption.• Taxes levied on income and ownership.• Customs duties.• Taxes levied on the utility of state own properties.
18 Burma sources of revenue• Taxes on income, profits, and capital gains are levied on the actual or presumptive net income of individuals, on the profits of corporations and enterprises, and on capital gains, whether realized or not, on land, securities, and other assets. Intergovernmental payments are eliminated in consolidation.
19 Burma tax rate TaxpayerCompanies formed in Myanmar 30 percentunder the Myanmar Companies Actor any other existing Myanmar LawEnterprise operating under the UMFIL 30 percentForeign organization engaged under 30 percentspecial permission in a State sponsored project,enterprise or any undertakingIndividual foreigners engaged 20 percentunder special permission in a Statesponsored project, enterprise or any undertakingIncome earned abroad by non-resident citizen 10 percent(On gross income)
6.Income earned by resident foreigner 15 percent7.Capital gain (resident) 10 percent8.Capital gain (Non-resident Foreigner) 40 percent9.Salary Progressive rates ranging from 3 percent to 30 percent (At 30 percent on income exceeding Kyat 500,001)10.Professional income, business income, Progressive rates rangingproperty income, income from other from 5 percent to 35sources and income from percentundisclosed sources of Individual At 35 percent on income exceeding Kyat 2,000,001)
21 India tax history• The organizational history of the Income-tax Department starts in the year 1922. The Income-tax Act, 1922, gave, for the first time, a specific nomenclature to various Income-tax authorities.
22 India tax type• The Income tax government of India has introduced this method of taxation in order to stabilize the economy of our country. The money that is collected by way of taxes is spends on the welfare of the country and its citizens. The Income tax government of India have taking out different types of taxes. The income tax rates India are of three types. They are progressive, proportional and regressive.
23 India sources of revenueThe major source of revenue in India is through (1) Direct taxes (2) Indirect taxes (3) Deficit financing (4) International borrowings
Top 5 government spending of revenue for24 India Currently this information is unavailable
26 Philippines tax history• During the 17th and 18th centuries, the Spanish perform their duties as tax collectors. During these times, taxes that were collected from the inhabitants varied from tribute or head tax of one gold maiz annually; tax on value of jewelries and gold trinkets; indirect taxes on tobacco, wine, cockpits, burlas and powder. From 1521 to 1821, the Spanish treasury had to subsidize the Philippines in the amount of P 250,000.00 per annum due to the poor financial condition of the country, which can be primarily attributed to the poor revenue collection system.
27 Philippines tax type progressive tax since the tax base increases as the tax rate increases. Taxation is founded on the ability of the taxpayer to pay. It is also a combination of the global and scheduler systems of taxation.
28 Philippines tax rate• Not over P10,000………………………………… 5%• Over P10,000 but not over P30,000……………… P500+10% of the excess over P10,000• Over P30,000 but not over P70,000……………… P2,500+15% of the excess over P30,000• Over P70,000 but not over P140,000……..……… P8,500+20% of the excess over P70,000
29 Philippines tax rate• Over P140,000 but not over P250,000…………… P22,500+25% of the excess over P140,000• Over P250,000 but not over P500,000…………… P50,000+30% of the excess over P250,000• Over P500,000 …………………………………… P125,000+34% of the excess over P500,000 in 1998.
30 Philippines sources of revenue • Sources of Revenues; the following taxes are national internal revenue taxes: • 1. Income Tax • 2. Estate and donors taxes • 3. Value-Added tax • 4. Other percentage taxes • 5. Excise taxes • 6. Documentary Stamp taxes • 7. Such other taxes as are or hereafter may be imposed and collected by the Bureau of Internal Revenue
31 Philippines sources of revenue • Tariffs and Duties – Second to the BIR in terms of revenue collection, the Bureau of Customs (BOC) imposes tariffs and duties on all items imported into the Philippines. According to Executive Order 206, returning residents, Overseas Filipino Workers (OFW’s) and former Filipino citizens are exempted from paying duties and tariffs. • E-VAT – The Extended Value Added Tax (E-VAT), is a form of sales tax that is imposed on the sale of goods and services and on the import of goods into the Philippines. It is a consumption tax (those who consume more are taxed more) and an indirect tax, which can be passed on to the buyer. The current E-VAT rate is 12% of transactions. Some items which are subject to E-VAT include petroleum, natural gases, indigenous fuels, coals, medical services, legal services, electricity, non-basic commodities, clothing, non-food agricultural products, domestic travel by air and sea. • Income Taxes – Income tax is a tax on a persons income, wages, profits arising from property, practice of profession, conduct of trade or business or any stipulated in the National Internal Revenue Code of 1997 (NIRC), less any deductions granted. Income tax in the Philippines is a progressive tax, as people with higher incomes pay more than people with lower incomes. Personal income tax rates vary as such
How do the government of Philippines32 spend their tax • Allocation of the top 10 Departments (In billion pesos) Department FY 2010 FY 2011 Ranking GAA GAA 1. DepEd (inc. SBP) 175 207.3 1 2. DPWH 135.6 110.6 2 3. DND 96.2 104.7 3 (inc. AFP Modernization Fund) 4. DILG 78.8 88.1 4 5. DA 41.2 35.2 5
34 Thailand tax history • The Revenue Department of Thailand was founded on the 2nd September 1915 by King Rama VI(ร.๖), following on from King Rama Vs(ร.๕) visions to establish countrywide infrastructure, and to provide a revenue collection platform in order for
36 Thailand sources of revenue • Personal income tax. Corporate income tax. VAT Private enterprise Tax. Income tax. And taxes are collected by local authorities, including. Tax. Property tax Local maintenance tax
37 How government spend their tax Thailand • Budget of Thailand 2001-2011.htm