DOCSLIB.ORG

Overview of the French Tax System

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Overview of the French Tax System DIRECTION GÉNÉRALE DES FINANCES PUBLIQUES (PUBLIC FINANCES DIRECTORATE GENERAL) TAX POLICY DIRECTORATE – Bureau A – OVERVIEW OF THE FRENCH TAX SYSTEM – Legislation in force as at 31 December 2016 – This document summarises the French tax system. It does not in any way constitute a statement of the official doctrine of the department that drafted it. SUMMARY INTRODUCTION I – TAXATION IN RELATION TO OTHER MANDATORY LEVIES II – TAXATION IN FRENCH LAW PART I: TAXES ON INCOME CHAPTER 1: CORPORATION TAX I – SCOPE OF CORPORATION TAX A. TAXABLE PERSONS 1 – Persons taxable automatically (Article 206-1 et seq. CGI) 2 – Persons taxable optionally 3 – The tax regime for other public or private organisations B. EXCLUSIONS OR EXEMPTIONS 1 – Exclusions 2 – Exemptions C. TERRITORIALITY II – DETERMINING TAXABLE INCOME A. GENERAL RULES FOR DETERMINING PROFITS B. TAX CONSOLIDATION (Articles 223 A to 223 U CGI) C. CALCULATING THE TAXABLE PROFIT III – ASSESSMENT AND PAYMENT OF THE TAX CHAPTER 2: PERSONAL INCOME TAX I – TAXABLE INCOME II – SCOPE OF PERSONAL INCOME TAX A. TAXABLE PERSONS 1 – Domicile for tax purposes – Tax household rule 2 – Tax treatment of persons domiciled in France 3 – Tax treatment of persons not domiciled in France B. EXEMPT PERSONS III – TAXATION OF INCOME RECEIVED BY INDIVIDUALS A. PERSONS DOMICILED IN FRANCE 1 – Business profits 2 – Non-commercial profits 3 – Agricultural profits 4 – Income from property 5 – Wages, salaries, pensions and annuities 6 – Investment income 7 – Capital gains 2 B. PERSONS NOT DOMICILED IN FRANCE 1 – Income subject to withholding tax 2 – Other income from French sources subject to deduction at source in discharge of tax liability or to withholding tax 3 – Exemption of certain categories of income or profits from French sources received by persons not domiciled in France for tax purposes IV – DETERMINATION OF TOTAL INCOME V – CALCULATING THE TAX CHAPTER 3: SOCIAL LEVIES I – GENERAL SOCIAL SECURITY CONTRIBUTION (CSG) II – SOCIAL SECURITY DEBT REPAYMENT CONTRIBUTION III – 4.5% SOCIAL LEVY AND OTHER ADDITIONAL LEVIES IV – SOLIDARITY LEVY OF 2% V – EMPLOYEE CONTRIBUTION ON GAINS FROM EXERCISING STOCK OPTIONS AND ACQUIRING BONUS SHARES VI – EMPLOYEE CONTRIBUTION APPLICABLE TO CERTAIN PAYMENTS AND GAINS ON CARRIED INTEREST UNITS OR SHARES VII – CONTRIBUTION FROM BENEFICIARIES OF TOP HAT PENSION SCHEMES (RETRAITES CHAPEAUX) VIII – SOCIAL CONTRIBUTION ON CORPORATE INCOME TAX IX – CORPORATE SOCIAL SOLIDARITY CONTRIBUTION CHAPTER 4: PAYROLL TAXES PART II: TAXES ON EXPENDITURE CHAPTER 1: VALUE ADDED TAX I – CHARACTERISTICS OF VAT A. VAT IS A TERRITORIAL TAX B. VAT IS A REAL TAX C. VAT IS AN INDIRECT TAX PAID IN FRACTIONS D. VAT IS A PROPORTIONAL TAX II – TAX BASE III – CALCULATING THE AMOUNT OF VAT A. CALCULATING GROSS VAT B. OFFSETTING THE TAX ON INPUTS IV – OBLIGATIONS ON LIABLE PERSONS V – SPECIAL RULES CHAPTER 2: EXCISE DUTIES I – TAXATION OF ALCOHOL AND ALCOHOLIC BEVERAGES II – TAXES ON SUGARY AND ARTIFICIALLY SWEETENED DRINKS III – DOMESTIC CONSUMPTION TAX ON ENERGY PRODUCTS IV – DUTY ON TOBACCO PRODUCTS 3 V – DUTY ON PRECIOUS METALS VI – GENERAL TAX ON POLLUTING ACTIVITIES PART III: TAXES ON ASSETS CHAPTER 1: REGISTRATION DUTIES I – REGISTRATION FORMALITY II – MAIN REGISTRATION DUTIES A. SALE OF REAL PROPERTY B. TRANSFERS OF BUSINESSES AND SIMILAR TRANSFERS C. REGISTRATION DUTIES APPLICABLE TO COMPANIES D. INHERITANCE AND GIFT DUTIES CHAPTER 2: STAMP DUTIES AND SIMILAR DUTIES I – STAMP DUTIES II – VEHICLE STAMP DUTIES A. TAX ON VEHICLE REGISTRATION CERTIFICATES B. SURTAX ON THE MOST POLLUTING PRIVATE VEHICLES C. TAX IN ADDITION TO THE REGISTRATION CERTIFICATE TAX D. ANNUAL SURTAX E. TAX ON COMPANY CARS CHAPTER 3: WEALTH TAX I – LIABLE PERSONS II – TAX BASE III – TAX SCALE IV – CAPPING OF WEALTH TAX CHAPTER 4: TAX ON THE MARKET VALUE OF REAL PROPERTIES OWNED IN FRANCE BY LEGAL ENTITIES (3% TAX) PART IV: LOCAL DIRECT TAXES CHAPTER 1: PROPERTY TAX ON DEVELOPED LAND CHAPTER 2: PROPERTY TAX ON UNDEVELOPED LAND CHAPTER 3: RESIDENCE TAX CHAPTER 4: LOCAL ECONOMIC CONTRIBUTION I – BUSINESS PREMISES CONTRIBUTION Minimum tax base scale for the business premises contribution on turnover or revenue II – CONTRIBUTION ON BUSINESS VALUE ADDED CHAPTER 5: FLAT-RATE TAX ON NETWORK BUSINESSES CHAPTER 6: OTHER LOCAL TAXES I – ADDITIONAL TAXES II – SPECIAL INFRASTRUCTURE TAXES GLOSSARY APPENDICES 4 List of tax treaties concluded by France and in effect on 1 January 2017 New Caledonia and overseas territorial units with which the French Republic has concluded a tax treaty The tax structure Estimated State revenues in 2015 5 INTRODUCTION This handbook describes the broad outlines of the French tax system. First, let us consider two questions: the place of taxation within the system of all mandatory levies, and the place of taxation in French law. I – TAXATION IN RELATION TO OTHER MANDATORY LEVIES Mandatory levies include taxes, fees for services rendered, customs duties and social security contributions. Taxes are payments imposed on individuals and legal entities according to their ability to pay without any specific consideration in return in order to cover public spending and achieve the economic and social objectives set by the government. Fees for services rendered, payable for the use of certain public services or for the right to use them, are also mandatory levies but are not strictly speaking taxes since they entitle the payer to a consideration in return. Customs duties are distinguished from taxes by their economic purpose, namely to protect the domestic market. Social security contributions, though mandatory, are not taxes since they are levied for a specific purpose, namely social protection, and benefits are paid in return. II – TAXATION IN FRENCH LAW The need for taxation is asserted in Article 13 of the Declaration of the Rights of Man and of the Citizen of 26 August 1789: “For the maintenance of the public force, and for administrative expenses, a general tax is indispensable”, adding that “it must be equally distributed among all citizens, in proportion to their ability to pay”. Article 14 of the Declaration states that “All citizens have the right to ascertain, by themselves or through their representatives, the need for a public tax, to consent to it freely, to watch over its use, and to determine its proportion, basis, collection and duration”. Unlike other mandatory levies, taxes may be assessed and collected only by virtue of an act of the legislature, i.e. Parliament. This principle is enshrined in Article 34 of the Constitution of the Fifth Republic of 4 October 1958, according to which rules concerning the base, rates and methods of collection of taxes of all types are set by statute. The executive is therefore involved only in implementing the tax rules defined by Parliament, stipulating the terms and conditions of their application under the control of the tax courts. Consequently, the tax administration interprets and comments on legal provisions in circulars that must neither add to nor subtract from the law. Otherwise the circular is unlawful and may be nullified by the French Supreme Administrative Court ( Conseil d'État ) on an appeal from taxpayers. If that is the case, the unlawful circular is not binding on taxpayers. Conversely, the administration may not argue that a circular was unlawful against a taxpayer who has applied it. This guarantee also applies where the administration has issued a formal ruling on the assessment of a given situation with regard to a tax rule. Thus, tax law provides that where a taxpayer has applied a tax rule according to the interpretation given by the administration through published instructions or circulars and not retracted at the date of the relevant operations, the administration may not order additional payments on the grounds of some other interpretation. In addition, under Article 53 of the aforementioned Constitution, treaties that commit government finances or modify provisions which are the preserve of statute law may be ratified or approved only by 6 an Act of Parliament. Article 55 of the Constitution states that duly ratified or approved treaties or agreements prevail, upon publication, over Acts of Parliament, provided that the other party has applied the treaty or agreement concerned. This means that domestic tax law is subordinate to provisions of international treaties or agreements. Under Article 54 of the Constitution, if the Constitutional Council ( Conseil constitutionnel ) has declared that an international commitment contains a clause contrary to the Constitution, authorisation to ratify or approve it may be given only after the Constitution has been amended. * * * This handbook describes the main taxes levied in France, distinguishing four categories: • taxes on income • taxes on expenditure • taxes on assets • direct local taxes This handbook merely describes the rules laid down in domestic French law. More detailed information may be found on the portal of the Ministry for the Economy and Finance (http://www.impots.gouv.fr), which has been designed to allow non-residents to obtain information that concerns them. The Public Finances Directorate General provides the general public with all documents containing an administrative interpretation of tax rules in a single, free-of-charge official tax bulletin (BOFIP-Impôts, available from the website of the Ministry for the Economy and Finance). These documents are also available on the Ministry’s website ( http://www.impots.gouv.fr/portail ). Bilateral tax treaties for the avoidance
Load more

Recommended publications
  • L E S B I a N / G
    LESBIAN/GAY L AW JanuaryN 2012 O T E S 03 11th Circuit 10 Maine Supreme 17 New Jersey Transgender Ruling Judicial Court Superior Court Equal Protection Workplace Gestational Discrimination Surrogacy 05 Obama Administration 11 Florida Court 20 California Court Global LGBT Rights of Appeals of Appeal Parental Rights Non-Adoptive 06 11th Circuit First Same-Sex Co-Parents Amendment Ruling 14 California Anti-Gay Appellate Court 21 Texas U.S. Distict Counseling Non-Consensual Court Ruling Oral Copulation High School 09 6th Circuit “Outing” Case Lawrence- 16 Connecticut Based Challenge Appellate Ruling Incest Conviction Loss of Consortium © Lesbian/Gay Law Notes & the Lesbian/Gay Law Notes Podcast are Publications of the LeGaL Foundation. LESBIAN/GAY DEPARTMENTS 22 Federal Civil Litigation Notes L AW N O T E S 25 Federal Criminal Litigation Editor-in-Chief Notes Prof. Arthur S. Leonard New York Law School 25 State Criminal Litigation 185 W. Broadway Notes New York, NY 10013 (212) 431-2156 | [email protected] 26 State Civil Litigation Notes Contributors 28 Legislative Notes Bryan Johnson, Esq. Brad Snyder, Esq. 30 Law & Society Notes Stephen E. Woods, Esq. Eric Wursthorn, Esq. 33 International Notes New York, NY 36 HIV/AIDS Legal & Policy Kelly Garner Notes NYLS ‘12 37 Publications Noted Art Director Bacilio Mendez II, MLIS Law Notes welcomes contributions. To ex- NYLS ‘14 plore the possibility of being a contributor please contact [email protected]. Circulation Rate Inquiries LeGaL Foundation 799 Broadway Suite 340 New York, NY 10003 THIS MONTHLY PUBLICATION IS EDITED AND (212) 353-9118 | [email protected] CHIEFLY WRIttEN BY PROFESSOR ARTHUR LEONARD OF NEW YORK LAW SCHOOL, Law Notes Archive WITH A STAFF OF VOLUNTEER WRITERS http://www.nyls.edu/jac CONSISTING OF LAWYERS, LAW SCHOOL GRADUATES, AND CURRENT LAW STUDENTS.
    [Show full text]
  • United States V. Windsor and the Future of Civil Unions and Other Marriage Alternatives
    Volume 59 Issue 6 Tolle Lege Article 4 9-1-2014 United States v. Windsor and the Future of Civil Unions and Other Marriage Alternatives John G. Culhane Follow this and additional works at: https://digitalcommons.law.villanova.edu/vlr Part of the Family Law Commons Recommended Citation John G. Culhane, United States v. Windsor and the Future of Civil Unions and Other Marriage Alternatives, 59 Vill. L. Rev. Tolle Lege 27 (2014). Available at: https://digitalcommons.law.villanova.edu/vlr/vol59/iss6/4 This Article is brought to you for free and open access by Villanova University Charles Widger School of Law Digital Repository. It has been accepted for inclusion in Villanova Law Review by an authorized editor of Villanova University Charles Widger School of Law Digital Repository. Culhane: United States v. Windsor and the Future of Civil Unions and Other VILLANOVA LAW REVIEW ONLINE: TOLLE LEGE CITE: VILL. L. REV. TOLLE LEGE 27 (2013) UNITED STATES v. WINDSOR AND THE FUTURE OF CIVIL UNIONS AND OTHER MARRIAGE ALTERNATIVES JOHN G. CULHANE* HE Supreme Court’s decision in United States v. Windsor1 was a T victory for the LGBT rights movement and a vindication of basic principles of dignity and equality. The Court ruled that Section 3 of the Defense of Marriage Act (DOMA), which defined marriage as the union of a man and a woman for purposes of federal law,2 betrayed the Constitution’s promise of liberty, as expressed through the due process clause of the Fifth Amendment.3 For Justice Kennedy, who authored the majority opinion, congressional zeal for excluding legitimately married same-sex couples from the federal benefits and responsibilities attendant to marriage could only be explained by animus toward these couples.4 For evidence of such animus, the Court looked no further than the many anti-gay statements that found their way into the Congressional Record and the House Report of DOMA.5 That Congress cut so deeply into the definition of marriage otherwise left to the individual states, just to exclude same-sex couples, was further proof of the true purpose behind DOMA.
    [Show full text]
  • Note on Taxation System
    Note on Taxation system Introduction Today an important problem against each government is that how to get income temporarily by debt also, but they have to return it after some time. Some government income is received from government enterprises, administrative and judicial tasks and other such sources, but a big part of government income is received from taxation. Taxes: - Taxes are those compulsory payments which are used without any such hope towards government by tax payers that they will get direct benefit in return of them. According to Prof. Seligman, ‘’ Tax is that compulsory contribution given to Government by individuals which is paid in the payment of expenses in all general favours and no special benefit is given in lieu of that.’’ According to Trussing, ‘’The special thing is that in regard of tax in comparison to all amounts taken by government, quid pro quo is not found directly between taxpayer and government administration in it.’’ Characteristics of a Tax It is clear by above mentioned definitions that some specialties are found in tax which are as follows: - (1) Compulsory Contribution—Tax is a contribution given to state by people living within the premises of country due to residence and property etc. or by citizens and this contribution is given for general use only. Though it is a compulsory contribution, therefore, no individual can deny from the payment of tax. For example, no person can say that he is not getting benefit from some services provided by that state or he didn’t get the right to vote, therefore, he is not bound to pay tax.
    [Show full text]
  • Australia Overview 2018-19 Individual Income and Social Taxes
    Australia Overview 2018-19 Individual Income and Social Taxes Gaining an understanding of the tax system in a new country is a critical step in addressing risks and reducing costs for companies with mobile employees. This overview summarizes key individual income and social tax compliance and tax planning considerations for companies sending employees to work in Australia. Individual income tax overview A resident of Australia is subject to Australian income tax on worldwide income at graduated tax rates that range up to 45% of taxable income. A temporary resident (defined below) is not taxed on their foreign investment income or capital gains. A non-resident of Australia is subject to Australian income tax only on Australian source income at graduated rates ranging from 32.5% to 45%. Residency A person is generally a resident of Australia if the person is domiciled in Australia or spends more than 183 days in Australia during the tax year. Domicile is the person’s permanent home (where they intend to live permanently). Individuals holding a Temporary Skills Shortage visa (i.e., subclass 482) are classified as temporary residents if they meet the following criteria: • they do not meet the definition of residency for Australian social security purposes (e.g., not a citizen, permanent resident), and • the taxpayer’s spouse is also not a resident of Australia for social security purposes. A visitor is a non-resident if they intend and actually spend less than 183 days in Australia. Available tax treaties should be considered in cases of dual-residence. Tax filings Tax Year: July 1 to June 30.
    [Show full text]
  • When Marriage Is Too Much: Reviving the Registered Partnership in a Diverse Society Abstract
    M ARY C HARLOTTE Y . C ARROLL When Marriage Is Too Much: Reviving the Registered Partnership in a Diverse Society abstract. In the years since same-sex marriage’s legalization, many states have repealed their civil union and domestic partnership laws, creating a marriage-or-nothing binary for couples in search of relationship recognition. This Note seeks to add to the growing call for legal recognition of partnership pluralism by illustrating why marriage is not the right fit—or even a realistic choice—for all couples. It highlights in particular the life-or-death consequences matrimony can bring for those reliant on government healthcare benefits because of a disability or a need for long- term care. Building upon interview data and a survey of state nonmarital partnership policies, it proposes the creation of a customizable marriage alternative: the registered partnership. author. Yale Law School, J.D. 2020; University of Cambridge, M.Phil. approved 2017; Rice University, B.A. 2016. I am grateful first and foremost to Anne Alstott, whose endless support, encouragement, and feedback enabled me to write this Note. I am further indebted to Frederik Swennen and Wilfried Rault for taking the time to speak with me about nonmarital partnerships in France and Belgium and to Kaiponanea T. Matsumura and Michael J. Higdon for invaluable guidance on nonmarital partnerships in the United States. Thanks also to the wonderful editors of the Yale Law Journal’s Notes & Comments Committee, especially Abigail Fisch, for their thoughtful comments; to the First- and Second-Year Editors, for their careful review of my Note; and to the Streicker Fund for Student Research, whose generosity made it possible for me to con- duct the research that informed this project.
    [Show full text]
  • State Individual Income Tax Federal Starting Points
    STATE PERSONAL INCOME TAXES: FEDERAL STARTING POINTS (as of January 1, 2021) Federal Tax Base Used as Relation to Federal Starting Point to Calculate STATE Internal Revenue Code State Taxable Income ALABAMA --- --- ALASKA no state income tax --- ARIZONA 1/1/20 adjusted gross income ARKANSAS --- --- CALIFORNIA 1/1/15 adjusted gross income COLORADO Current taxable income CONNECTICUT Current adjusted gross income DELAWARE Current adjusted gross income FLORIDA no state income tax --- GEORGIA 3/27/20 adjusted gross income HAWAII 3/27/20 adjusted gross income IDAHO 1/1/20 taxable income ILLINOIS Current adjusted gross income INDIANA 1/1/20 adjusted gross income IOWA Current adjusted gross income KANSAS Current adjusted gross income KENTUCKY 12/31/18 adjusted gross income LOUISIANA Current adjusted gross income MAINE 12/31/19 adjusted gross income MARYLAND Current adjusted gross income MASSACHUSETTS 1/1/05 adjusted gross income MICHIGAN Current (a) adjusted gross income MINNESOTA 12/31/18 adjusted gross income MISSISSIPPI --- --- MISSOURI Current adjusted gross income MONTANA Current adjusted gross income NEBRASKA Current adjusted gross income NEVADA no state income tax --- NEW HAMPSHIRE on interest & dividends only --- NEW JERSEY --- --- NEW MEXICO Current adjusted gross income NEW YORK Current adjusted gross income NORTH CAROLINA 5/1/20 adjusted gross income NORTH DAKOTA Current taxable income OHIO 3/27/20 adjusted gross income OKLAHOMA Current adjusted gross income OREGON 12/31/18 taxable income PENNSYLVANIA --- --- RHODE ISLAND Current adjusted gross income SOUTH CAROLINA 12/31/19 taxable income SOUTH DAKOTA no state income tax --- TENNESSEE on interest & dividends only --- TEXAS no state income tax --- UTAH Current adjusted gross income VERMONT 12/31/19 adjusted gross income VIRGINIA 12/31/19 adjusted gross income WASHINGTON no state income tax --- WEST VIRGINIA 12/31/19 adjusted gross income WISCONSIN 12/31/17 adjusted gross income WYOMING no state income tax --- DIST.
    [Show full text]
  • Journal of Accountancy Business Tax Quick Guide — Tax Year 2018
    Journal of Accountancy Business tax quick guide — tax year 2018 Tear out this quick guide for use during tax season, and look for our quick guide for individual taxpayers in the January 2019 issue. C CORPORATION INCOME TAX ■■■ Credit: Maximum amount of 5.4% for contributions paid to ■■■ Taxable income of a C corporation: Taxed at a flat rate of state unemployment insurance funds. 21%. ESTIMATED TAX QUALIFIED PERSONAL SERVICE CORPORATION TAX ■■■ Corporations owing $500 or more in income tax for the ■■■ Taxable income of a qualified personal service corporation tax year must make estimated tax payments equaling the is no longer subject to tax at a flat rate of 35%, but is taxed lesser of 100% of the prior-year or current-year tax liability. at the regular corporate tax rate of 21%. Large corporations must base the last three payments on the current-year tax liability. ACCUMULATED EARNINGS TAX ■■■ Due on the 15th day of the fourth, sixth, ninth, and 12th ■■■ 20% of accumulated taxable income (in addition to regular months of the corporation’s tax year (April 15, June 15, corporate income tax). Sept. 15, and Dec. 15 for calendar-year corporations). PERSONAL HOLDING COMPANY TAX CORPORATE ALTERNATIVE MINIMUM TAX (AMT) ■■■ ■■■ 20% penalty on undistributed personal holding company Starting in 2018, the AMT no longer applies to corporations. income. ■■■ No foreign tax credit allowed against personal holding company tax. NONRESIDENT AND FOREIGN CORPORATIONS ■■■ Taxed on U.S.-source investment income at 30% (or lower under treaty). SELF-EMPLOYMENT TAX ■■■ Net income effectively connected with a U.S.
    [Show full text]
  • 2021 Tax Rates, Schedules, and Contribution Limits
    2021 tax rates, schedules, and contribution limits Income tax Tax on capital gains and qualified dividends If taxable Income income But Of the Single Married/Filing jointly/Qualifying Widow(er) Tax rate is over not over The tax is amount over $0–$40,400 $0–$80,800 0% Married/Filing $0 $19,900 $0.00 + 10% $0 jointly and $19,900 $81,050 $1,990 + 12% $19,900 Over $40,400 but not Over $80,800 but not over qualifying over $445,850 $501,600 15% widow(er)s $81,050 $172,750 $9,328 + 22% $81,050 Over $445,850 Over $501,600 20% $172,750 $329,850 $29,502 + 24% $172,750 Additional 3.8% federal net investment income (NII) tax applies to individuals $329,850 $418,850 $67,206 + 32% $329,850 on the lesser of NII or modified AGI in excess of $200,000 (single) or $250,000 $418,850 $628,300 $95,686 + 35% $418,850 (married/filing jointly and qualifying widow(er)s). Also applies to any trust or $628,300 $168,993.50 + 37% $628,300 estate on the lesser of undistributed NII or AGI in excess of the dollar amount Single $0 $9,950 $0.00 + 10% $0 at which the estate/trust pays income taxes at the highest rate ($13,050). $9,950 $40,525 $995 + 12% $9,950 Kiddie tax* $40,525 $86,375 $4,664 + 22% $40,525 Child’s unearned income above $2,200 is generally subject to taxation at $86,375 $164,925 $14,751 + 24% $86,375 the parent’s marginal tax rate; unearned income above $1,100 but not $164,925 $209,425 $33,603 + 32% $164,925 more than $2,200 is taxed at the child’s tax rate.
    [Show full text]
  • IRS Publication 4128, Tax Impact of Job Loss
    Publication 4128 Tax Impact of Job Loss The Life Cycle Series A series of informational publications designed to educate taxpayers about the tax impact of significant life events. Publication 4128 (Rev. 5-2020) Catalog Number 35359Q Department of the Treasury Internal Revenue Service www.irs.gov Facts JOB LOSS CREATES TAX ISSUES References The Internal Revenue Service (IRS) recognizes that the loss of a job may • Publication 17, Your create new tax issues. The IRS provides the following information to Federal Income Tax (For assist displaced workers. Individuals) • Severance pay and unemployment compensation are taxable. • Publication 575, Payments for any accumulated vacation or sick time are also Pension and Annuity taxable. You should ensure that enough taxes are withheld from Income these payments or make estimated payments. See IRS Publication 17, Your Federal Income Tax, for more information. • Publication 334, Tax Guide for Small • Generally, withdrawals from your pension plan are taxable unless Businesses they are transferred to a qualified plan (such as an IRA). If you are under age 59 1⁄2, an additional tax may apply to the taxable portion of your pension. See IRS Publication 575, Pension and Annuity Income, for more information. • Job hunting and moving expenses are no longer deductible. • Some displaced workers may decide to start their own business. The IRS provides information and classes for new business owners. See IRS Publication 334, Tax Guide for Small Businesses, for more information. If you are unable to attend small business tax workshops, meetings or seminars near you, consider taking Small Business Taxes: The Virtual Workshop online as an alternative option.
    [Show full text]
  • WHO, WHAT, HOW and WHY Fact Sheet
    Ta x , Super+You. Take Control. Years 7-12 Tax 101 Activity 2 WHO, WHAT, HOW AND WHY Fact sheet How do we work out what is a fair amount of tax to pay? • Is it fair that everyone, regardless of Different types of taxes affect their income and expenses, should taxpayers in different ways. pay the same amount of tax? • Is it fair if those who earn the most pay the most tax? • What is a fair amount of tax TYPES OF TAXES AND CHARGES for people who use community resources? Taxes can only be collected if a law has been passed to permit their collection. The Commonwealth of Australia Constitution Act established a federal system of government when it created TAX STRUCTURES the nation of Australia in 1901. It distributes law-making powers between the national government and the states and territories. There are three tax structures used in Australia: Each level of government imposes different types of taxes and Proportional taxes: the same percentage is levied, charges. During World War II the Australian Government took regardless of the level of income. Company tax is a over all responsibilities for income tax and it has remained the proportional tax as the same rate applies for all companies, major source of federal tax revenue ever since. regardless of the profit earned. Progressive taxes: the higher the income, the higher the Levels of government and their taxes percentage of tax paid. Income tax for individuals is a Federal progressive tax. State or territory Local (Australian/Commonwealth) Regressive taxes: the same dollar amount of tax is paid, regardless of the level of income.
    [Show full text]
  • Charging Drivers by the Pound: the Effects of the UK Vehicle Tax System
    Charging Drivers by the Pound The Effects of the UK Vehicle Tax System Davide Cerruti, Anna Alberini, and Joshua Linn MAY 2017 Charging Drivers by the Pound: The Effects of the UK Vehicle Tax System Davide Cerruti, Anna Alberini, and Joshua Linn Abstract Policymakers have been considering vehicle and fuel taxes to reduce transportation greenhouse gas emissions, but there is little evidence on the relative efficacy of these approaches. We examine an annual vehicle registration tax, the Vehicle Excise Duty (VED), which is based on carbon emissions rates. The United Kingdom first adopted the system in 2001 and made substantial changes to it in the following years. Using a highly disaggregated dataset of UK monthly registrations and characteristics of new cars, we estimate the effect of the VED on new vehicle registrations and carbon emissions. The VED increased the adoption of low-emissions vehicles and discouraged the purchase of very polluting vehicles, but it had a small effect on aggregate emissions. Using the empirical estimates, we compare the VED with hypothetical taxes that are proportional either to carbon emissions rates or to carbon emissions. The VED reduces total emissions twice as much as the emissions rate tax but by half as much as the emissions tax. Much of the advantage of the emissions tax arises from adjustments in miles driven, rather than the composition of new car sales. Key Words: CO2 emissions, vehicle registration fees, carbon taxes, vehicle excise duty, UK JEL Codes: H23, Q48, Q54, R48 Contact: [email protected]. Cerruti: postdoctoral researcher, Center for Energy Policy and Economics, ETH Zurich; Alberini: professor, Department of Agricultural and Resource Economics, University of Maryland; Linn: senior fellow, Resources for the Future.
    [Show full text]
  • Worldwide Estate and Inheritance Tax Guide
    Worldwide Estate and Inheritance Tax Guide 2021 Preface he Worldwide Estate and Inheritance trusts and foundations, settlements, Tax Guide 2021 (WEITG) is succession, statutory and forced heirship, published by the EY Private Client matrimonial regimes, testamentary Services network, which comprises documents and intestacy rules, and estate Tprofessionals from EY member tax treaty partners. The “Inheritance and firms. gift taxes at a glance” table on page 490 The 2021 edition summarizes the gift, highlights inheritance and gift taxes in all estate and inheritance tax systems 44 jurisdictions and territories. and describes wealth transfer planning For the reader’s reference, the names and considerations in 44 jurisdictions and symbols of the foreign currencies that are territories. It is relevant to the owners of mentioned in the guide are listed at the end family businesses and private companies, of the publication. managers of private capital enterprises, This publication should not be regarded executives of multinational companies and as offering a complete explanation of the other entrepreneurial and internationally tax matters referred to and is subject to mobile high-net-worth individuals. changes in the law and other applicable The content is based on information current rules. Local publications of a more detailed as of February 2021, unless otherwise nature are frequently available. Readers indicated in the text of the chapter. are advised to consult their local EY professionals for further information. Tax information The WEITG is published alongside three The chapters in the WEITG provide companion guides on broad-based taxes: information on the taxation of the the Worldwide Corporate Tax Guide, the accumulation and transfer of wealth (e.g., Worldwide Personal Tax and Immigration by gift, trust, bequest or inheritance) in Guide and the Worldwide VAT, GST and each jurisdiction, including sections on Sales Tax Guide.
    [Show full text]