The tax imposed on an individual or an entity depending on the amount of income or even profits they receive is known as the personal tax. Personal tax is usually charged depending on the tax rates imposed in the given state or country on the incomes and profits. These tax rates imposed are usually progressive where the amount of personal tax to be paid increases as the incomes and profits of the individual increases. The amount of income that the personal tax is charged on individuals who reside in the given state or country is usually their total income less any activity that generates tax and other deductions imposed. Personal tax can also be charged from the net gain obtained after sale of any property such as goods for sale. Personal tax is imposed on certain income sources non-residents obtain from activities carried out within the state or region.
Imposition of personal tax is usually based on certain principles such as the taxpayers and rates, residents and non-residents, defining income, deductions allowed, business profits among others. Personal tax is only charged on individuals and entities that have not been legally identified as corporations and the rates depends on the slab where the income falls. Some of the incomes where personal tax is charged includes the money they receive from services compensation, sale of property and goods, dividends, interest, royalties, rents, pensions, annuities among others. There are those incomes that one is nor required to pat the personal income such as the superannuation income and national payment plans after retirement.
Payment of personal tax should be done on regular basis depending on the rate at which one receives their income. This is usually done online in the sites provided by the body mandated with collection of tax … Read More..Read More →