The German taxation system differs from the Indian system in several key ways:
1) Taxes in Germany are levied by the federal government, state governments, and municipalities, while India has a three-tier system of central, state, and local governments.
2) Germany taxes worldwide income of residents while India only taxes income generated within the country.
3) Major taxes include income tax, corporate tax, VAT/GST, and inheritance/gift tax in both countries but the rates and structures vary.
4) Germany has a progressive income tax rate up to 45% while India has slab-based rates.
5) Both systems provide some tax incentives but Germany incentivizes specific industries while India focuses on
This document provides an overview of taxation in India. It discusses the history of income tax, which was first introduced in India in 1860. It outlines the various tax authorities in India, including central and state governments and municipalities. It defines key terms related to taxation like income, assessment year, and previous year. It also provides examples of statements showing taxable income from sources like salary, house property, business/profession, and a summary statement of total taxable income. Finally, it briefly discusses value-added tax.
Service tax is a tax levied on service providers in India at a rate of 10.3% which includes a 10% service tax amount and 3% education cess on the service tax amount. Businesses providing taxable services exceeding Rs. 7 lakhs annually must register within 30 days by submitting Form ST-1 along with required documents. Certain services such as those provided to the UN or in special economic zones are exempted from service tax. Service providers with aggregate taxable services not exceeding Rs. 8 lakhs annually are also fully exempted. Invoice/bills for taxable services must be issued within 14 days and contain specified details, and service tax must be paid through specified banks using challan GAR
This document discusses various aspects of taxation systems including:
1. It outlines basic principles of tax systems such as fiscal adequacy, equality, and administrative feasibility.
2. It describes different classifications of taxes based on subject matter, who bears the burden, and how the amount is determined.
3. It provides examples of direct taxes like income tax and estate tax, as well as indirect taxes like sales tax and value added tax.
Need guidance with constantly evolving tax consultancy services in Sharjah, UAE? At SS&Co, we provide comprehensive accounting, advisory, consulting, and tax services to its firm’s clients. Contact us today and we serve you better. Visit: https://ssconsultancyme.com/tax-consultancy/
This document provides an overview of Tax Deduction at Source (TDS) in India. TDS refers to tax deducted at the source of income by the payer from amounts paid to the recipient. The key points covered are:
- TDS is an advance tax paid to the government and the tax deducted has to be deposited within a specified time.
- Employers, government bodies, companies, banks, and other specified entities are responsible for deducting TDS based on the type of payment and thresholds.
- Various sections of the Income Tax Act specify the rates of TDS to be applied on different types of income such as salaries, interest, rent, professional fees, lottery winnings
Tally is an accounting software that integrates business operations like sales, finance, purchasing, inventory and manufacturing. It provides accurate, up-to-date business information anywhere. The document discusses Tally's features like remote access, support center and security management. It also covers how to create companies, backup/restore data, ledgers, voucher types, balance sheets and profit and loss accounts in Tally. The hardware requirements for running Tally like Windows OS, RAM, disk space and processor are also mentioned.
This chapter from the textbook Intermediate Accounting discusses accounting for income taxes. It covers differences between pre-tax financial income and taxable income, temporary and permanent differences that result in future taxable or deductible amounts, deferred tax assets and liabilities, applying tax rates, net operating losses, and the asset-liability method for income tax accounting. The chapter is prepared by Jep Robertson and Renae Clark of New Mexico State University.
This document provides an overview of taxation in India. It discusses the history of income tax, which was first introduced in India in 1860. It outlines the various tax authorities in India, including central and state governments and municipalities. It defines key terms related to taxation like income, assessment year, and previous year. It also provides examples of statements showing taxable income from sources like salary, house property, business/profession, and a summary statement of total taxable income. Finally, it briefly discusses value-added tax.
Service tax is a tax levied on service providers in India at a rate of 10.3% which includes a 10% service tax amount and 3% education cess on the service tax amount. Businesses providing taxable services exceeding Rs. 7 lakhs annually must register within 30 days by submitting Form ST-1 along with required documents. Certain services such as those provided to the UN or in special economic zones are exempted from service tax. Service providers with aggregate taxable services not exceeding Rs. 8 lakhs annually are also fully exempted. Invoice/bills for taxable services must be issued within 14 days and contain specified details, and service tax must be paid through specified banks using challan GAR
This document discusses various aspects of taxation systems including:
1. It outlines basic principles of tax systems such as fiscal adequacy, equality, and administrative feasibility.
2. It describes different classifications of taxes based on subject matter, who bears the burden, and how the amount is determined.
3. It provides examples of direct taxes like income tax and estate tax, as well as indirect taxes like sales tax and value added tax.
Need guidance with constantly evolving tax consultancy services in Sharjah, UAE? At SS&Co, we provide comprehensive accounting, advisory, consulting, and tax services to its firm’s clients. Contact us today and we serve you better. Visit: https://ssconsultancyme.com/tax-consultancy/
This document provides an overview of Tax Deduction at Source (TDS) in India. TDS refers to tax deducted at the source of income by the payer from amounts paid to the recipient. The key points covered are:
- TDS is an advance tax paid to the government and the tax deducted has to be deposited within a specified time.
- Employers, government bodies, companies, banks, and other specified entities are responsible for deducting TDS based on the type of payment and thresholds.
- Various sections of the Income Tax Act specify the rates of TDS to be applied on different types of income such as salaries, interest, rent, professional fees, lottery winnings
Tally is an accounting software that integrates business operations like sales, finance, purchasing, inventory and manufacturing. It provides accurate, up-to-date business information anywhere. The document discusses Tally's features like remote access, support center and security management. It also covers how to create companies, backup/restore data, ledgers, voucher types, balance sheets and profit and loss accounts in Tally. The hardware requirements for running Tally like Windows OS, RAM, disk space and processor are also mentioned.
This chapter from the textbook Intermediate Accounting discusses accounting for income taxes. It covers differences between pre-tax financial income and taxable income, temporary and permanent differences that result in future taxable or deductible amounts, deferred tax assets and liabilities, applying tax rates, net operating losses, and the asset-liability method for income tax accounting. The chapter is prepared by Jep Robertson and Renae Clark of New Mexico State University.
This document summarizes tax deduction at source requirements in India. It states that any person responsible for making income payments covered by the tax scheme must deduct tax at prescribed rates and deposit the amounts by the 7th of the following month. It also outlines requirements for obtaining a TAN number, issuing TDS certificates, submitting quarterly statements, and penalties for non-compliance. Various sections are cited that specify TDS rates for different types of payments like salary, rent, interest, dividends, and commission.
Deductions section 80 d, 80-dd ,80-ddb 80-e and 80-gg of it act.boseShankar Bose Sbose1958
This document provides an overview of various deductions available under sections 80C to 80U of the Indian Income Tax Act of 1961. It discusses deductions available for encouraging savings, certain personal expenditures, socially desirable activities, and persons with disabilities. Specifically, it outlines deductions for life insurance premiums (80C), pension funds (80CCC), contribution to central government pension schemes (80CCD), medical insurance/treatment (80D, 80DD, 80DDB), education loans (80E), and rent paid (80GG). The maximum aggregate deduction under sections 80C, 80CCC and 80CCD is Rs. 1,00,000.
The document provides information about Tax Deducted at Source (TDS) in India, including:
1. TDS is a certain percentage deducted from various payments like salary, commission, rent, interest, and dividends that is remitted to the government and can be adjusted against tax due.
2. The concept of TDS aims for "pay as you earn" taxation where tax is deducted at the time of payment.
3. A deductor is the person/company liable to deduct tax from payments made, while a deductee is the person from whom tax is deducted.
1. presentation on input tax credit under gstNarayan Lodha
GST, Goods And Service Tax, Basic Concept and Principals of Input Credit under GST, Availability of ITC in Special cases, ITC- Input Service Distributor, Electronic Cash Ledger, Electronic Credit Ledger, Refund of Tax under GST
Filing tax returns - pitfalls and precautionsAmeet Patel
This document provides information on filing individual income tax returns in India, including:
- When filing a return is mandatory based on income thresholds
- Due dates for filing depending on taxpayer category
- Penalties for late or non-filing
- The filing process and appropriate forms to use
- Key deductions and exemptions to claim correctly
- Obtaining tax credits and ensuring TDS is reflected in Form 26AS
- Precautions like maintaining documents and making payments by cheque
- New requirements introduced in recent income tax return forms
The document discusses provident funds in India, including statutory provident funds for government employees, recognized provident funds for large private organizations, unrecognized funds, and public provident funds. It notes that employer contributions are fully exempt for statutory and public funds. Employee contributions are deductible under section 80C for all funds. Interest is fully exempt for statutory, recognized up to 9.5%, and public funds, but taxable for unrecognized funds. At retirement, payouts are fully exempt for all except unrecognized funds, which are fully taxable. It also provides an example calculation for taxable recognized provident fund of an employee.
Income tax introduction and basic conceptsDr.Sangeetha R
The document provides an introduction to income tax concepts including:
1) It defines income tax as a tax imposed by governments on the income generated by individuals and businesses within their jurisdiction, with taxpayers required to file annual returns.
2) It distinguishes between direct taxes, where the tax burden falls directly on the taxpayer, and indirect taxes, where the burden is passed on to consumers. Income tax is an example of a direct tax.
3) It outlines key income tax terms - the assessment year is the year income is taxed, the previous year is when the income was earned, and an assessee is anyone subject to income tax rules.
The document summarizes changes made to tax deducted at source (TDS) provisions by the Finance Act of 2020. Several existing sections related to TDS were amended and new sections for TDS on various types of payments were introduced. Key changes include amendments to TDS for dividends, interest, technical services fees, and mutual fund income. New sections introduce TDS for cash withdrawals, business trust unit income, and e-commerce participant payments. The changes are effective from financial years 2020-21 onward.
Objectives & Agenda :
One of the heads of income under the Income Tax Act is Income from House Property. Under this head, incomes earned from house properties are chargeable to tax. The webinar covers the aspects of basis of charging income to tax under this head, nature of house properties taxed under the Act, manner of computing income chargeable to tax under this head, deductions available under this head and eventually judicial precedents pertaining to this head of income.
Presentation on the Indirect Tax system in India, the need for tax reforms, the journey to GST, basic understanding and features of GST and the benefits of GST.
The document provides an overview of India's taxation system. It notes that the system is based on three tiers: central government, state government, and local government. Taxes are divided into direct taxes, such as income tax, and indirect taxes, such as customs duty and excise. The central government collects taxes like customs, corporation tax, sales tax, and securities transaction tax. State governments collect taxes including stamp duty, state excise, VAT, land revenue, and entertainment tax. Residency status determines whether an individual's global or only domestic income is taxed. Other taxes mentioned include profession tax, dividend distribution tax, property tax, and toll tax. Revenue collection from direct and indirect taxes has increased substantially from 2000-
This document discusses taxation provisions for non-resident Indians (NRIs). It defines an NRI as an individual who is a citizen of India or person of Indian origin who is not a resident as per the Income Tax Act. Residential status is important for determining the scope of income taxable and availability of tax concessions. For NRIs, income earned in India from employment, house property, capital gains and other sources is taxable in India. Special provisions provide preferential tax rates for investment income and long-term capital gains from specified foreign exchange assets if reinvested in India. To claim relief under double taxation avoidance agreements, NRIs must obtain a tax residency certificate from their country of residence.
The document summarizes various provisions related to the computation of income from business or profession under the Indian Income Tax Act. It discusses the meaning of business income and what types of incomes are chargeable under this head. It also outlines specific deductions allowed like rent, repairs, depreciation, scientific research, preliminary expenses, and more. It provides details on the calculation of profits, losses, treatment of unabsorbed depreciation and the methods of claiming depreciation.
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
The document summarizes key aspects of the Swedish tax system. It provides statistics on Sweden's GDP and public sector revenues and expenditures. It shows that total tax revenues in Sweden as a percentage of GDP have generally increased since 1966 and are higher than the EU average. The document also outlines the different types of taxes in Sweden classified by national accounts, including indirect taxes, direct taxes, and social security taxes. It indicates that a majority of taxes in Sweden are collected by central government rather than state or local governments. Finally, it compares tax bases across OECD countries.
1. Will is used to talk about future actions that are decided at the time of speaking, while going to is used for actions already decided before speaking.
2. In the example, Sue says "We'll invite lots of people" as the party idea was new, but Helen says "We are going to invite lots of people" as the decision was made earlier.
3. Going to can also indicate predictions based on present evidence, like clouds meaning it's going to rain, while will is more general for predictions without present evidence.
This document summarizes tax deduction at source requirements in India. It states that any person responsible for making income payments covered by the tax scheme must deduct tax at prescribed rates and deposit the amounts by the 7th of the following month. It also outlines requirements for obtaining a TAN number, issuing TDS certificates, submitting quarterly statements, and penalties for non-compliance. Various sections are cited that specify TDS rates for different types of payments like salary, rent, interest, dividends, and commission.
Deductions section 80 d, 80-dd ,80-ddb 80-e and 80-gg of it act.boseShankar Bose Sbose1958
This document provides an overview of various deductions available under sections 80C to 80U of the Indian Income Tax Act of 1961. It discusses deductions available for encouraging savings, certain personal expenditures, socially desirable activities, and persons with disabilities. Specifically, it outlines deductions for life insurance premiums (80C), pension funds (80CCC), contribution to central government pension schemes (80CCD), medical insurance/treatment (80D, 80DD, 80DDB), education loans (80E), and rent paid (80GG). The maximum aggregate deduction under sections 80C, 80CCC and 80CCD is Rs. 1,00,000.
The document provides information about Tax Deducted at Source (TDS) in India, including:
1. TDS is a certain percentage deducted from various payments like salary, commission, rent, interest, and dividends that is remitted to the government and can be adjusted against tax due.
2. The concept of TDS aims for "pay as you earn" taxation where tax is deducted at the time of payment.
3. A deductor is the person/company liable to deduct tax from payments made, while a deductee is the person from whom tax is deducted.
1. presentation on input tax credit under gstNarayan Lodha
GST, Goods And Service Tax, Basic Concept and Principals of Input Credit under GST, Availability of ITC in Special cases, ITC- Input Service Distributor, Electronic Cash Ledger, Electronic Credit Ledger, Refund of Tax under GST
Filing tax returns - pitfalls and precautionsAmeet Patel
This document provides information on filing individual income tax returns in India, including:
- When filing a return is mandatory based on income thresholds
- Due dates for filing depending on taxpayer category
- Penalties for late or non-filing
- The filing process and appropriate forms to use
- Key deductions and exemptions to claim correctly
- Obtaining tax credits and ensuring TDS is reflected in Form 26AS
- Precautions like maintaining documents and making payments by cheque
- New requirements introduced in recent income tax return forms
The document discusses provident funds in India, including statutory provident funds for government employees, recognized provident funds for large private organizations, unrecognized funds, and public provident funds. It notes that employer contributions are fully exempt for statutory and public funds. Employee contributions are deductible under section 80C for all funds. Interest is fully exempt for statutory, recognized up to 9.5%, and public funds, but taxable for unrecognized funds. At retirement, payouts are fully exempt for all except unrecognized funds, which are fully taxable. It also provides an example calculation for taxable recognized provident fund of an employee.
Income tax introduction and basic conceptsDr.Sangeetha R
The document provides an introduction to income tax concepts including:
1) It defines income tax as a tax imposed by governments on the income generated by individuals and businesses within their jurisdiction, with taxpayers required to file annual returns.
2) It distinguishes between direct taxes, where the tax burden falls directly on the taxpayer, and indirect taxes, where the burden is passed on to consumers. Income tax is an example of a direct tax.
3) It outlines key income tax terms - the assessment year is the year income is taxed, the previous year is when the income was earned, and an assessee is anyone subject to income tax rules.
The document summarizes changes made to tax deducted at source (TDS) provisions by the Finance Act of 2020. Several existing sections related to TDS were amended and new sections for TDS on various types of payments were introduced. Key changes include amendments to TDS for dividends, interest, technical services fees, and mutual fund income. New sections introduce TDS for cash withdrawals, business trust unit income, and e-commerce participant payments. The changes are effective from financial years 2020-21 onward.
Objectives & Agenda :
One of the heads of income under the Income Tax Act is Income from House Property. Under this head, incomes earned from house properties are chargeable to tax. The webinar covers the aspects of basis of charging income to tax under this head, nature of house properties taxed under the Act, manner of computing income chargeable to tax under this head, deductions available under this head and eventually judicial precedents pertaining to this head of income.
Presentation on the Indirect Tax system in India, the need for tax reforms, the journey to GST, basic understanding and features of GST and the benefits of GST.
The document provides an overview of India's taxation system. It notes that the system is based on three tiers: central government, state government, and local government. Taxes are divided into direct taxes, such as income tax, and indirect taxes, such as customs duty and excise. The central government collects taxes like customs, corporation tax, sales tax, and securities transaction tax. State governments collect taxes including stamp duty, state excise, VAT, land revenue, and entertainment tax. Residency status determines whether an individual's global or only domestic income is taxed. Other taxes mentioned include profession tax, dividend distribution tax, property tax, and toll tax. Revenue collection from direct and indirect taxes has increased substantially from 2000-
This document discusses taxation provisions for non-resident Indians (NRIs). It defines an NRI as an individual who is a citizen of India or person of Indian origin who is not a resident as per the Income Tax Act. Residential status is important for determining the scope of income taxable and availability of tax concessions. For NRIs, income earned in India from employment, house property, capital gains and other sources is taxable in India. Special provisions provide preferential tax rates for investment income and long-term capital gains from specified foreign exchange assets if reinvested in India. To claim relief under double taxation avoidance agreements, NRIs must obtain a tax residency certificate from their country of residence.
The document summarizes various provisions related to the computation of income from business or profession under the Indian Income Tax Act. It discusses the meaning of business income and what types of incomes are chargeable under this head. It also outlines specific deductions allowed like rent, repairs, depreciation, scientific research, preliminary expenses, and more. It provides details on the calculation of profits, losses, treatment of unabsorbed depreciation and the methods of claiming depreciation.
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
The document summarizes key aspects of the Swedish tax system. It provides statistics on Sweden's GDP and public sector revenues and expenditures. It shows that total tax revenues in Sweden as a percentage of GDP have generally increased since 1966 and are higher than the EU average. The document also outlines the different types of taxes in Sweden classified by national accounts, including indirect taxes, direct taxes, and social security taxes. It indicates that a majority of taxes in Sweden are collected by central government rather than state or local governments. Finally, it compares tax bases across OECD countries.
1. Will is used to talk about future actions that are decided at the time of speaking, while going to is used for actions already decided before speaking.
2. In the example, Sue says "We'll invite lots of people" as the party idea was new, but Helen says "We are going to invite lots of people" as the decision was made earlier.
3. Going to can also indicate predictions based on present evidence, like clouds meaning it's going to rain, while will is more general for predictions without present evidence.
This document shows a series of photo credits attributed to different photographers and suggests that the reader may be inspired to create their own presentation on SlideShare using Haiku Deck. It lists the names of 9 different photographers whose work is featured and encourages getting started with Haiku Deck on SlideShare.
Waleed Shafqat is applying for a full-time position and seeks to add value through his motivation and skills. He describes himself as hardworking, motivated, reliable, and effective. His experience includes roles in marketing, business consulting, accounting, and modeling. He has a post-graduate diploma in marketing and business management from the University of Bedfordshire and has worked in both Pakistan and England.
The music video for 21 Guns by Green Day uses a variety of camera angles and shots including close-ups of the band members' faces from different perspectives, medium shots, and wide shots showing the whole band. Mise-en-scene includes dark lighting conveying the sad tone and well-lit scenes matching increases in tempo. Explosions and destruction occur on the constructed set. Editing matches faster transitions to increases in pace. The video follows rock music conventions like the relationship between lyrics and visuals, a focus on instruments, and close-ups of the singer.
Shifa Consulting Services was established by Shifa International Hospital to help facilitate quality improvements and top-of-the-line treatments in hospitals through advisory services based on Shifa's experience in quality healthcare. Shifa Consulting Services provides expertise in areas like hospital operations, planning and management, business advisory, human resources, and more. The goal is to help existing and future hospitals establish world-class standards of care.
This document analyzes a music magazine article from Kerrang magazine. The headline uses a rough font in red on a black background, indicating it is a rock magazine. The main image on one page is a large unique photo of the band doing an interesting pose that shows violence, portraying what type of band they are. The other page has three columns of writing providing information and stories, with small images at the bottom to complement the main image on the other page. A pull quote in red text on a black box previews the story and artist to attract readers.
This dissertation explores the potential for permaculture to contribute to understandings of sustainable rural livelihoods and development. It reviews literature on the interactions between Chambers' and Conway's Sustainable Livelihoods Approach and permaculture principles. The introduction provides an overview of the research aim, questions, and methods. It examines permaculture and its relevance to debates around sustainable rural livelihoods and agricultural development. The dissertation structure is then outlined.
This document summarizes a research paper that aims to reconstruct a user's web browsing history from browser event data using a conditional random field model. The researchers assembled a dataset by developing a Chrome extension to log browser events like key presses, clicks, and page loads along with the URL of the active page. They propose a linear-chain CRF that models dependencies between latent state transitions (URL changes) and observations (events). This model outperforms a logistic regression baseline on three evaluation metrics.
This document provides details about creating a music video for the song "Spring/Sun/Winter/Dread" by the band Everything Everything. It discusses the band, song, target audience, lyrics, ideas for the concept and filming of the music video including using lighting, effects and camera techniques to represent the passage of time. The video will feature close-up shots of the band's performance in a dark room illuminated by spotlights to create a mysterious atmosphere.
The Eucharist mass involves four main rites: the gathering, the liturgy of the Word, the liturgy of the Eucharist, and the concluding rites. During the gathering, Christians sing praise to God and the priest greets the congregation. The liturgy of the Word includes readings from scripture and a sermon to nourish souls with God's message. In the liturgy of the Eucharist, the bread and wine are blessed, broken, and received as holy communion. Finally, during the concluding rites, people are sent into the world to spread Christ's message.
This document analyzes how a music magazine called "My Music" represents a particular social group. The magazine targets an older teenage/young adult (17-25) audience based on the ages of the artists featured. It is also designed mainly for males, as most of the featured artists and topics discussed are male-oriented. The magazine appeals primarily to white audiences, as the photos on the cover and in the magazine are of white male artists, and the mod/alternative music genres are typically associated with white audiences. The article content would resonate most with people passionate about music but facing challenges pursuing it, such as a lack of money or crime in their area.
This document discusses air and water pollution. It defines air pollution as the introduction of harmful substances into the atmosphere, giving examples such as smog and dust particles. Common causes of air pollution include vehicle emissions, factory smoke, and burning fires. Water pollution is defined as introducing chemicals, physical, or biological materials that degrade water quality and harm organisms. Examples provided are industrial waste and agricultural runoff. The document recommends ways to prevent pollution, such as using public transport, bicycles, installing factory filters, and not bathing in water sources.
Papuc elena marcela how to be a better managerEly Elena
This document discusses effective management and leadership. It begins by stating that management involves deciding what needs to be done and accomplishing goals through people. Good management requires understanding situations, making decisions, and taking direct action when needed. The purpose of management is to provide direction, facilitate change, and achieve results efficiently using available resources. Some good ways for becoming a better manager include having a clear vision, communicating expectations effectively, knowing how goals are progressing, and accepting mistakes sometimes. A good manager will be judged on both results achieved and competence demonstrated in achieving those results.
The document discusses perceptions of women's leadership abilities compared to men. While leadership has traditionally been a male-dominated role, research shows women are increasingly represented in management and leadership positions. However, women still believe negative stereotypes about their leadership persist and can result in discrimination. Studies show qualities stereotypically associated with women, like femininity, are generally not qualities associated with successful leaders. Women exhibiting the same behaviors as men tend to be judged less favorably. As a result, stories in the media can perpetuate misperceptions of women leaders and create false notions that they are inferior to male leaders.
Gianmauro Sherman Nigretti - Austria - corporate and tax highlightsGianmauro Nigretti
Austria has a population of 8.22 million with its capital in Vienna. It has a federal republic political system. Common forms of business organization include sole proprietorships, partnerships (general and limited), GmbH and Co KGs, civil law partnerships, corporations (GmbH and AG), and foundations/trusts. Accounting requires annual financial statements. Large companies and some others require statutory audits. Corporate income tax is 25% and individual income tax ranges from 0-50%. VAT is 20% with some reduced rates. Other taxes include capital transfer, real estate, insurance, and social security taxes.
Germany has several business taxes including a 15% company tax rate plus a 5.5% solidarity surcharge and a 14-17% municipal surcharge. To pay company tax in Germany, businesses must register for tax, file tax returns, and make advance tax payments. Company tax is paid on profits from business operations, investments, and asset sales. Tax rules vary by EU country but are overseen to ensure free movement of goods and no unfair advantages between members.
This document provides an overview of the Dutch tax system and opportunities for tax planning for expatriates working in the Netherlands. It outlines the basics of taxation including tax rates, deductions, and social security contributions. It also discusses planning opportunities for structuring compensation packages and benefits to maximize tax efficiency. Grant Thornton's Global Mobility Services team can help expatriates and employers navigate the Dutch tax system and identify tax planning strategies.
This document provides an overview of tax systems in Central and Eastern European countries. It begins with a foreword discussing how countries in the region have pursued different tax policies in response to the economic crisis, moving towards more complicated systems. It then provides multi-paragraph summaries of corporate tax rates and structures, VAT and other indirect taxes, and personal income tax rates in 15 countries - Austria, Bosnia and Herzegovina, Croatia, Czech Republic, FYROM, Greece, Hungary, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, and Ukraine. Contact information is provided for Mazars tax experts in each country.
Income tax in India is governed by the central government and applies to non-agricultural income. It consists of the Income Tax Act of 1961, rules, notifications, finance acts, and court decisions. Individuals and entities are taxed on certain income depending on residential status, with taxes administered by the Central Board of Direct Taxes. Total tax revenue collection increased substantially between 1997-1998 and 2007-2008. In 2018-2019, direct tax collections were approximately ₹11.17 trillion. Tax is also collected through tax deduction at source on various types of payments according to thresholds. Key documents needed for filing taxes include Form 16, salary slips, Form 26AS, PAN card, and Aadhaar
This document provides information on different types of business entities and structures that can be established in Germany by foreign investors, including:
- Limited liability companies (GmbH), stock corporations (AG), partnerships, and branches are common options. Requirements vary but include minimum capital and number of owners.
- Branches allow foreign companies to conduct business in Germany directly while still being fully liable under the foreign company. Subsidiaries are independent German legal entities subject to German laws.
- Both branches and subsidiaries require registration, obtaining tax and VAT numbers, filing financial statements, and appointing legal representatives in accordance with German laws.
- Employment contracts in Germany are governed by labor laws, collective bargaining agreements, and
Poland is located in Central Europe and borders several countries. Its capital is Warsaw and its official language is Polish. There are various taxes in Poland's taxation system, including corporate income tax of 19%, personal income tax with rates from 18-32%, VAT with standard and reduced rates, transaction tax on certain civil law transactions, and real estate tax. Foreign investors can acquire Polish real estate by asset deal or share deal and must follow various rules depending on their country of origin.
Taxation of dividends – Get informed about whether you have to pay taxes or n...UWU Solutions, Lda.
Over the past years “Profit and Gains Ltd.” has been having a great performance. This company based in Portugal since 2009 has been expanding its business into international markets, taking advantage from the growth of some emerging markets through means of local partnerships. The international dimension is part of its DNA, since its four founding partners are of different nationalities. João is Portuguese, Carlos is Angolan, Alfonso is from Spain and Walter from Belgium. Each one of them hold 25% of the company’s capital.
For the first time, and due to the company’s good results, the four members are considering to start distributing dividends. However, their doubts about how much taxes they will pay are preventing them to go ahead with the decision. In addition to their different nationalities, João and Walter’s share of the “Profit and Gains Ltd.” capital is done through other companies they have created, so that they could invest in other companies.
In order to help these four investors and to clarify all their doubts about taxation of dividends, we will begin by analysing the overall framework of this issue, so that we can then apply the rules to the actual case.
- Learn more at http://bit.ly/1w3QYF8
International taxation and transfer pricing for transfer pricing ssuser47f0be
This document discusses international taxation and transfer pricing. It provides an overview of key concepts in international taxation such as double taxation, foreign tax credits, and tax treaties. It also discusses transfer pricing regulations and guidelines from the OECD and IRS that require transactions between related parties to be conducted at arm's length prices comparable to third party transactions. The document outlines methods used to determine appropriate transfer prices such as cost-plus and resale price methods.
Germany provides several incentives for investment including a central location, skilled workforce, and a 15% corporate tax rate. The most common legal business structure is a GmbH, which offers limited liability. Germany has a comprehensive social security and labor system where both employers and employees contribute monthly. Taxes include a solidary surcharge, trade tax, personal income tax, VAT, inheritance/gift tax, and real estate transfer tax.
This document summarizes key aspects of Poland's tax system according to a 2016 brochure by Baker & McKenzie. It outlines the corporate income tax rate of 19%, personal income tax rates ranging from 18-32%, and a standard VAT rate of 23% with some reduced rates. It also discusses social security contributions that are split between employers and employees, as well as other taxes such as tax on civil law transactions and real estate tax.
Introduction to tax accounting accounts next genArpit Umrewal
The principles often used to determine tax financial assets in such a company or person account reports are tax accounting. Instead of using one of the accounting systems, including GAAP or IFRS, tax accounting is based mostly on Internal Revenue Code (IRC). Tax accounting results in a taxable income estimate which differs from the revenue estimate stated on the income statements of an entity. The distinction is since tax laws can speed up or slow down the acknowledgement of such expenditures, which would usually be recognized in an accounting cycle.
If you are considering to expand your business activities in Central and Eastern Europe, Slovakia should be on the top of your destinations list. Thank to its political stability, strategic location, common European currency, competitive taxation system and well-educated and highly skilled workforce Slovakia counts as one of the most attractive country in the region of CEE.
This document discusses international taxation for multinational corporations. It covers key topics like how taxes affect investment decisions, different tax rates and types of taxes across countries, and strategies to minimize double taxation. The objective for multinational companies is to minimize worldwide taxes by taking advantage of differences in tax laws and rates between countries where they operate.
The Belgian Parliament passed a law granting greater fiscal autonomy to Belgium's three Regions regarding individual income tax. This includes: 1) A new regional additional tax levied by each Region on resident taxpayers; 2) Shifting specific tax reductions from federal to regional authority; 3) Applying regional tax systems to some non-resident taxpayers earning most income in Belgium. The law enables components of Belgium's Sixth State Reform to take effect in 2014, regionalizing aspects of the personal income tax system and impacting taxpayers.
As with previous years, our tax experts have prepared a comprehensive yet brief overview of taxation in Hungary.
Our material shall provide you with the necessary information about Hungarian business environment and its statutory framework, therefore we encourage you to pay close attention.
The document summarizes changes to individual and corporate income taxation in Belgium for 2012. For individuals, the tax-free amount increased slightly but certain deductions are now limited to active income only. The tax rate remained at 19%. For corporations, the tax base continues to follow accounting profits with some adjustments. Various social security premium rates and maximums were also outlined.
The document provides an overview of company formation in Germany. It discusses the establishment of a GmbH, which requires at least one shareholder, two corporate bodies, a minimum share capital of EUR25,000, and liability is limited to business assets. It outlines the 5 steps for GmbH formation: drafting articles of association, notarization, payment of share capital, registration in the commercial register, and trade office registration. It also summarizes corporate taxation in Germany, including corporate income tax, solidarity surcharge, and trade tax which averages 29.83% overall tax burden. It concludes with incentives available for small and medium enterprises.
Taxes allow governments to provide goods and services by generating revenue. The US Constitution grants Congress the power to collect taxes to fund the common defense and general welfare. Federal taxes must be uniform across states and exempt religious activities. Taxes include income, sales, property and corporate taxes. Governments use tax revenue along with borrowing to fund expenditures through annual budgets. Fiscal policy aims to influence economic growth through taxing and spending decisions.
1. The German Taxation System-How is it different from India.
By CA.Pratik Niyogi
Introduction
Taxes in Germany—being a Federal Republic—are levied by the federation (Bund), the States (Länder) as well as
the Municipalities (Kommunen). Many direct and indirect taxes exist, whereof income tax and VAT are the most
relevant. The German word for tax is Steuer which origins from the Old High German word stiura meaning help.
Moreover, Steuer means steering.
Taxation principles
The German Constitution (Grundgesetz) lays down the principles governing taxation in Germany:
• The ability-to-pay principle (Art. 3 Para. 1 Grundgesetz)
• The welfare state principle (Art. 20 Grundgesetz)
• The lawfulness of taxation (Art. 2 Para. 1 and Art. 20 Para. 3 Grundgesetz)
• Equity in taxation (Art. 3 Para. 1 Grundgesetz).
The right to decide on taxes is subdivided:
• The Bund has the right on Customs (Art. 105 Para. 1 Grundgesetz)
• Bund and Länder decide together on most of the tax law. Formally the Länder can decide that there is no
federal law. In practice there are federal laws for all taxation issues. (Art. 105 Para. 2 Grundgesetz)
• The Länder decide on local Excise taxes (Art. 105 Para. 2a Grundgesetz)
• Districts/Municipalities can decide on some minor local taxes like the taxation of Dogs (Hundesteuer)
So even if Germany is a federal state 95% of all taxes are imposed on a federal level. The income of these taxes is
to be allocated to Bund and Länder as following (Art. 106 Grundgesetz):
• The Bund can use exclusively the revenue of:
o Customs
o taxes on Alcopop, Distilled beverages, Coffee, Mineral oil products, Sparkling wine, Electricity, Tobacco
and Insurances
o Supplement on income taxes so-called solidarity surcharge (Solidaritaetszuschlag)
• The Länder can use exclusively the revenue of:
o Inheritance tax, real property transfer tax
o Taxes on Cars, Beer
o Fire protection tax, Gambling tax
• The Districts/Municipalities can use exclusively the revenue of:
o Real property tax
o Trade Tax (Gewerbesteuer)
2. o Taxes on Beverages, Dogs, Inns and other things
Most of the revenue is earned by income tax and VAT. These taxes are used by Bund an Ländern by quota. The
Districts/Municipalities get a part of the income of the Länder.
In addition there is a compensation between rich and poor states ("Länderfinanzausgleich", Art. 107 para. 2
Grundgesetz
Income tax for residents
Individuals who are resident in Germany or have their normal place of abode there have full income tax liability.
All the income earned by these persons both at home and abroad is subject to German tax (principle of
world income).
Types of income
For the purposes of charging income tax in Germany, earnings are divided into seven different types of income. A
distinction is made between:
• Income from agriculture and forestry
• Income from business operations
• Income from self-employed work
• Income from employed work
• Capital income
• Income from letting property
• Miscellaneous income. (Excluding non-recurring and casual incomes)
If a taxpayer’s income does not fall into any of these categories, then it is not subject to income tax. This includes
e.g. winnings at a game show.
Withholding taxes
Tax on income from employed work and tax on capital income are both retained by being deducted at source
(PAYE tax, withholding tax), i.e. an amount of tax is retained directly by the employer or by the bank when the
earnings are paid out. The amount deducted counts as an advance tax payment.
Deductions
German income tax law makes provision for a considerable number of taxpayer’s costs to be deducted from tax.
This applies in particular to costs immediately related to earnings. Apart from this, other amounts are also
deductible, such as e.g. certain insurance payments, costs incurred by sickness, costs for home help,
maintenance payments, and more besides.
In addition to the possibility of deducting costs from tax, there are also numerous allowances and lump-sum
amounts which reduce taxable income. For instance, there is an allowance for capital earnings that is currently
EUR 801 for unmarried persons and EUR 1,601 for married couples; and a lump sum of EUR 920 is
deducted from income from employed work.
Tax return
The obligation to file an income tax return does not apply in all cases. Anyone exclusively earning income that is
subject to withholding tax deducted at source does not have to file an income tax return: their tax debt is
deemed settled on payment of the withholding tax. Despite this, any person having full tax liability may file a tax
return voluntarily, taking into account the PAYE tax or capital yield tax already paid in advance. In certain
circumstances, this may result in a tax refund.
Married couples can apply for joint assessment and are taxed at a more favourable rate than unmarried
persons.
3. Tax rate
German Income Tax Rate 2008
The rate of income tax in Germany increases progressively, ranging from 0% to 45% (marginal tax rate). The so-
called solidarity surcharge (Solidaritaetszuschlag) at a rate of 5.5% of income tax has to be paid on top of this (e.g.
25.00 % tax rate * 5.5 % solidarity surcharge = 26.375 % taxes in total). No income tax is charged on the basic
allowance, which is EUR 7,834 (2009) for unmarried persons and EUR 15,668 (2009) for jointly assessed married
couples.
Tax allowance for children
Expenditure on child support and on children’s vocational training is taken into account with a special tax
allowance, with allowances for costs expended on child supervision, education and training, and with child benefit
payments.
Income tax for non-residents
Individuals who are neither resident in Germany nor have their normal place of abode there are only liable to pay
tax in Germany if they earn income there which has a close domestic (German) context. This includes in particular
income from real estate in Germany or from a permanent establishment in Germany.
Double taxation conventions
Germany has reached Tax treaty with about 90 countries to avoid double taxation. These agreements under public
international law aim to avoid one and the same taxpayer being charged similar taxes more than once on the same
income for the same period. The basic structure of the Double Taxation Conventions which Germany has signed
follows the Model Tax Convention drawn up by the OECD.
Business taxes
German Tax Rate on Corporate Income 1995-2009
As from 2008-01-01, Germany’s rate of corporation tax is 15%. Counting both the solidarity surcharge (5.5% of
corporation tax) and trade tax (averaging 14% as from 2008-01-01), tax on corporations in Germany is less than
30%.
Corporation tax
Corporation tax is charged first and foremost on corporate enterprises, in particular public and private limited
companies, as well as other corporations such as e.g. cooperatives, associations and foundations. Sole
proprietorships and partnerships are not subject to corporation tax: profits earned by these set-ups are attributed to
their individual partners and then taxed in the context of their personal income tax bills.
Corporations domiciled or managed in Germany are deemed to have full corporation tax liability. This means that
their domestic and foreign earnings are all taxable in Germany.
Exemptions
4. Some corporate enterprises are exempted from corporation tax, e.g. charitable foundations, Church institutions, and
sports clubs.
Flat rate tax
The corporation tax charged at corporate level is 15% (flat rate tax). Solidarity surcharge as above income tax / tax
rate.
Assessment base
The assessment base for the corporation tax charged is the revenue which the corporate enterprise has earned during
the calendar year. Taxable profits are determined using the result posted in the annual accounts (balance sheet and
Income statement) drawn up under the Commercial Code. What is deemed income under tax law sometimes
diverges from the way earnings are determined under commercial law, in which case tax law provisions prevail.
Dividends
When dividends are paid to an individual person, capital yield tax at a rate of 25 % is charged. Since 2009-01-01
this tax is final for individuals who are resident in Germany. Solidarity surcharge as above income tax / tax rate.
When dividends are paid to an enterprise with full corporation tax liability, the recipient business is largely
exempted from paying tax on these revenues. In its tax assessment, merely 5% of the dividends are added to profits
as non-deductible operating expenses. The same applies if a taxable corporate enterprise sells shares in another
company.
Deducting tax from dividends paid by a subsidiary with full tax liability to a foreign parent domiciled in the EU is
waived on certain conditions: the parent company has to have a direct holding in the subsidiary of at least 15%.
Integrated fiscal units (group taxation)
Under German tax law, separate companies may be treated as integrated fiscal units for tax purposes (Organschaft).
In an integrated fiscal unit, a legally independent company (the controlled company) agrees under a profit and loss
pooling agreement to become dependent on another business (the controlling company) in financial, economic and
organizational terms. The controlled company undertakes to pay over its entire profits to the controlling company.
Another requirement is that the controlling company has to hold the majority of voting rights in the controlled
company.
In tax terms, recognition of a fiscal unit means that the income of the controlled company is allocated to the
controlling company. This provides an opportunity to balance profits and losses within the integrated fiscal unit.
Trade tax
Entrepreneurs engaging in business operations are subject to trade tax as well as corporation tax. In contrast to
corporation tax, trade tax is charged by the local authorities, who are entitled to the entire amount. The percent rate
for levying trade tax is fixed by each local authority separately within the range of rates prescribed by the central
government. As from 2008-01-01, the rate averages 14% of profits subject to trade tax.
Trade Tax Assessment procedure
The business entity has to file the trade tax return with the tax office, like its other tax returns. Taking any
allowances into account, the tax office calculates the trade earnings and then gives the applicable figure for a trade
tax assessment to the local authority collecting the tax. The underlying profit base, as well as the book-tax
differences for the local trade tax jurisdictions, may differ from that used for the corporation tax. On the basis of the
collecting rate (Hebesatz) in force in its area, the local authority calculates the trade tax payable.
5. Trade Tax for Unincorporated enterprises
One-man businesses and members of a partnership may deduct a large portion of trade tax from their personal
income tax bill.
Trade Tax Incorporated enterprises
As from 2008-01-01, corporate entities may no longer deduct trade tax from their taxable profits.
VALUE ADDED TAX
As a matter of principle, all goods and services performed in Germany by a business entity are subject to value-
added tax. This German VAT is part of the European Union Value Added Tax system.
Exemptions
Certain goods and services are exempted from value-added tax by law; this applies for German and foreign
businesses alike.
For example, the following are exempted from German value-added tax:
• export deliveries
• intra-Community supply of goods
• services provided by certain professional groups (e.g. doctors)
• financial services (e.g. granting loans)
• letting real estate in the long-term
• cultural services provided to the public (e.g. by public theatres, museums, zoos, etc.),
• value-added by certain institutions providing general education or vocational training
• services provided in an honorary or voluntary capacity.
Tax rate
The rate of value-added tax rate generally in force in Germany is 19%. A reduced tax rate of 7% applies e.g. on
sales of certain foods, books and magazines, flowers and transports.
Payment of the tax
Within 10 days of the end of each calendar quarter, the business entity has to send the tax office an advance return
in which it has to give its own computation of the tax for the preceding calendar quarter. The amount payable is the
value-added tax it has invoiced, minus any amounts of deductible input tax. Deductible input tax is the value-added
tax which the entrepreneur has been charged by other business entities.
The amount thus calculated has to be paid to the tax office by way of an advance. Larger businesses have to file the
advance return every month. For entrepreneurs who have only just taken up professional or commercial operations,
the monthly reporting period likewise applies during the first calendar year and in the year after that.
At the end of the calendar year, the entrepreneur has to file an annual tax return in which it has again calculated the
tax.
VAT for Small undertakings
Entrepreneurs whose turnover (plus the value-added tax on it) has not exceeded EUR 17,500 in the preceding
calendar year and is not expected to exceed EUR 50,000 in the current year (small enterprises), do not need to pay
value-added tax. However, these small enterprises are not allowed to deduct the input tax they have been billed.
Net worth tax or Wealth Tax
6. Actually there is no net worth tax.
Inheritance and gift tax
Inheritance tax and gift tax are regulated in one law. Taxable is either a transfer by reason of death or a gift amongst
livings. There are depreciations e.g. for family houses, families as well and for entrepreneurs (up to 100 %). The tax
rate is from 7 % up to 50 %.
The Indian Taxation System-An overview
Indian taxation system is highly organized and well developed. The entire tax structure of the country is managed
by a three-tier federal arrangement, comprising of the Union Government, the respective State Governments and
the various Local Bodies. Keeping in accord with the provisions of the Indian Constitution, the authority and power
to levy various taxes and duties is distributed amongst these three governmental tiers, in a planned manner. The
Union Government holds power to charge taxes like Income Tax (except on agricultural income), Custom Duties,
Central Excise and Service Tax.
On the other hand, the State Governments are empowered to levy taxes like VAT (Value Added Tax), Sales Tax,
(taxes on intra-state sale of goods in states where VAT is not in force), Stamp Duty (duty on transfer of property),
Land Revenue (tax on land), State Excise (duty on manufacture of alcohol), and Tax on Professions. State
Governments can also impose taxes on various agriculture incomes. Since April 1, 2005, most of the State
Governments in the country have substituted Sales Tax with Value Added Tax.
The various Local Bodies of the country also have their own command as far as the taxation structure is concerned.
They are authorized to levy Tax on Properties (buildings, etc.), Octroi (tax on entry of goods for use within areas of
the Local Bodies), Tax on Markets and also Taxes on Utilities like drainage, water supply and the like. From the
last decade, the taxation structure in India has witnessed major reforms and amendments. Tax Laws have been
rationalized and the tax rates have also been streamlined to a great extent, leading to better enforcement, simplified
payment modes and fair play.
India has a well-developed tax structure with clearly demarcated authority between Central and State Governments
and local bodies. Central Government levies taxes on income (except tax on agricultural income, which the State
Governments can levy), customs duties, central excise and service tax.
Value Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land
revenue and tax on professions are levied by the State Governments. Local bodies are empowered to levy tax on
properties, octroi and for utilities like water supply, drainage etc.
In last 10-15 years, Indian taxation system has undergone tremendous reforms. The tax rates have been rationalized
and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The
process of rationalization of tax administration is ongoing in India.
Since April 01, 2005, most of the State Governments in India have replaced sales tax with VAT.
7. Government of India provides tax incentives for:-
• Corporate profit
• Accelerated depreciation allowance
• Deductibility of certain expenses subject to certain conditions.
These tax incentives are, subject to specified conditions, available for new investment in
• Infrastructure,
• Power distribution,
• Certain telecom services,
• Undertakings developing or operating industrial parks or special economic zones,
• Production or refining of mineral oil,
• Companies carrying on R&D,
• Developing housing projects,
• Undertakings in certain hill states,
• Handling of food grains,
• Food processing,
• Rural hospitals etc.
Double Tax Avoidance Treaty
India has entered into DTAA with 65 countries including the US. In case of countries with which India has Double
tax Avoidance Agreement, the tax rates are determined by such agreements. Domestic corporations are granted
credit on foreign tax paid by them, while calculating tax liability in India.
The comparison
Basis of Differentiation Indian Taxation German Taxation
1. Name of the taxpayer Assignee Assignee
2. Assessment year 1st
April to 31st
March 1st
Jan to 31 Dec
3. Type of Income Taxable
Income in India is divided into Five heads- Salary,
Business Income, Capital Gains, Income from Housing
Property and Other Sources
Same as India, except Income from agriculture and forestry.
4. Treatment of Agriculture income Tax exempted in India Taxable
5. Basis for differentiating between TaxpayersGender/Seniority of the Taxpayer Marital status of Taxpayer
6. Basis of Taxation Residency Concept of World Income
9. Distribution of taxation
In India, Tax is progressive but still unable to capture
the big fishes in a desirable manner
Same but incidence of evasion is much less.
10. Attitude of People
Income Taxation is Considered a burden and people
tried to escape and evade taxation in every possible
manner
People understand the importance of taxation and comply with the
extent possible. They try to save tax rather than evading it
8. 11 Wealth Tax Applicable Does not Exist
12
Filing of Income
Tax
Has to be filed even if
entire Need not file if entire
income tax is paid by
TDS. income tax is paid by TDS.
13
Corporate Tax
Rate 30% 15%
14
Concept of
Capital Yield Tax Not Applicable
When dividends are paid to an individual person, capital yield tax at a rate of 25 %
is charged. Since 2009-01-01 this tax is final for individuals who are resident in
Germany.
15
Integrated fiscal
units (group
taxation) Not Applicable
Under German tax law, separate companies may be treated as integrated fiscal units
for tax purposes (Organschaft). In an integrated fiscal unit, a legally independent
company (the controlled company) agrees under a profit and loss pooling agreement
to become dependent on another business (the controlling company) in financial,
economic and organizational terms. The controlled company undertakes to pay over
its entire profits to the controlling company. Another requirement is that the
controlling company has to hold the majority of voting rights in the controlled
company.
In tax terms, recognition of a fiscal unit means that the income of the controlled
company is allocated to the controlling company. This provides an opportunity to
balance profits and losses within the integrated fiscal unit.
Conclusion
Taxation in Germany is a complicated process. German tax system involves 118 laws, 418 exceptions, 185 forms
and 96,000 policies. The tax system in Germany has been modified ample number of times due to political and
corporate moves and as a result the system has become complex.
However, The above facts help us to conclude that Germany has made rapid inroads in the area of taxation
reforms.The concepts of Capital Yield Tax on dividends ,Group Taxation,Global Income ,low corporate taxation
are the ones which a modern day economy demands.These concepts may well be considered in the context of
taxation reforms happening in India.
End