Serdar Bıçak
24.01.2023
Income tax is a form of taxation that imposes a tax on the total income of a person. Only natural persons are liable to pay income tax. Income tax is calculated on the total income earned by the income holder in a given year. There are different income tax brackets. When determining income tax, the tax rate for the tax bracket in question is calculated as a percentage and paid by providing an income tax return.
There are many different types of taxes according to jurisdiction, both direct and indirect. While some of these taxes are widespread, others are paid by only a small percentage. The most prominent of the taxes that a normal citizen will face in his daily life are basically the following:
● Income Tax
● Corporation Tax
● Value-Added Tax
● Private Consumption Tax
● Motor Vehicle Tax
● Stamp Tax
● Property Tax
● Customs Tax
According to the Income Tax Act, the company’s net income is calculated on the amount remaining after deduction of the expenses specified in the law. The corporate tax rate was set at 22% for 2018, 2019 and 2020 and increased to 25% for 2021. The corporate tax rate is set at 23% for 2022. Companies that are subject to incentives or pay their taxes in accordance with the rules communicated and established by the Revenue Authority in certain periods may be granted various reductions at this rate. Companies don’t make different declarations for all their branches, offices and factories. Rather, they submit the profits from all their activities in one declaration. If the company has incurred a loss during the financial year, it can show that loss in the tax matrix of the following financial year and deduct it from the taxable amount, but the loss of the previous period can be recovered for up to five years.
The most frequently asked questions are what income tax is and who pays it. In this respect, it is a very important concept. Income tax is a type of tax levied on the income of natural persons, that is, unincorporated individuals who are legally entitled and able to exercise authority. Income is the net amount of earnings and income earned by a natural person in a calendar year. There are elements of income in itself. Income subject to income tax is as defined in the Income Tax Act. Gains and losses included in this scope are:
– Gains from freelance work
– Gains from business
– Wages – Land gains
– Securities gains
– Real estate gains
– Other gains and losses.
If you are a calendar year filer and your tax year ends on December 31, the due date for filing your federal individual income tax return is generally April 15 of each year. If you use a fiscal year (tax year ending on the last day of any month other than December), your return is due on or before the 15th day of the fourth month after the close of your fiscal year. If your due date falls on a Saturday, Sunday, or legal holiday, the due date is moved to the next business day.
The government encourages citizens to invest in tax-saving investments specified in the Income Tax Law to reduce their tax burden. That way, you can make sure you have some kind of investment and stop spending excessive money on paying taxes. Here are some examples of tax savings tools.
● Public Provident Fund
● National Pension System
● Premium Paid Life Insurance policy
● National Savings Certificate
● Capital Linked Savings Plan
● Housing Loan Principal Amount
● Five-Year Fixed Deposit
● Sukanya Samariddhi Account
● Child Tuition Fees
The trend of working from home brought on by the pandemic has caused many Americans living in areas with high living costs to move to more affordable states, using flexibility to make more room in their budgets.
As inflation increases, retirees and those leaving the workforce are looking for ways to cut costs themselves, and a similar transition may make sense for those who are freed from the burden of going to an office.
Considering these, the ranking of the most tax-friendly states is as follows;
● Alaska
● Delaware
● Wyoming
● Florida
● New Hampshire
Serdar Bıçak
24.01.2023
Income tax is a form of taxation that imposes a tax on the total income of a person. Only natural persons are liable to pay income tax. Income tax is calculated on the total income earned by the income holder in a given year. There are different income tax brackets. When determining income tax, the tax rate for the tax bracket in question is calculated as a percentage and paid by providing an income tax return.
There are many different types of taxes according to jurisdiction, both direct and indirect. While some of these taxes are widespread, others are paid by only a small percentage. The most prominent of the taxes that a normal citizen will face in his daily life are basically the following:
● Income Tax
● Corporation Tax
● Value-Added Tax
● Private Consumption Tax
● Motor Vehicle Tax
● Stamp Tax
● Property Tax
● Customs Tax
According to the Income Tax Act, the company’s net income is calculated on the amount remaining after deduction of the expenses specified in the law. The corporate tax rate was set at 22% for 2018, 2019 and 2020 and increased to 25% for 2021. The corporate tax rate is set at 23% for 2022. Companies that are subject to incentives or pay their taxes in accordance with the rules communicated and established by the Revenue Authority in certain periods may be granted various reductions at this rate. Companies don’t make different declarations for all their branches, offices and factories. Rather, they submit the profits from all their activities in one declaration. If the company has incurred a loss during the financial year, it can show that loss in the tax matrix of the following financial year and deduct it from the taxable amount, but the loss of the previous period can be recovered for up to five years.
The most frequently asked questions are what income tax is and who pays it. In this respect, it is a very important concept. Income tax is a type of tax levied on the income of natural persons, that is, unincorporated individuals who are legally entitled and able to exercise authority. Income is the net amount of earnings and income earned by a natural person in a calendar year. There are elements of income in itself. Income subject to income tax is as defined in the Income Tax Act. Gains and losses included in this scope are:
– Gains from freelance work
– Gains from business
– Wages – Land gains
– Securities gains
– Real estate gains
– Other gains and losses.
If you are a calendar year filer and your tax year ends on December 31, the due date for filing your federal individual income tax return is generally April 15 of each year. If you use a fiscal year (tax year ending on the last day of any month other than December), your return is due on or before the 15th day of the fourth month after the close of your fiscal year. If your due date falls on a Saturday, Sunday, or legal holiday, the due date is moved to the next business day.
The government encourages citizens to invest in tax-saving investments specified in the Income Tax Law to reduce their tax burden. That way, you can make sure you have some kind of investment and stop spending excessive money on paying taxes. Here are some examples of tax savings tools.
● Public Provident Fund
● National Pension System
● Premium Paid Life Insurance policy
● National Savings Certificate
● Capital Linked Savings Plan
● Housing Loan Principal Amount
● Five-Year Fixed Deposit
● Sukanya Samariddhi Account
● Child Tuition Fees
The trend of working from home brought on by the pandemic has caused many Americans living in areas with high living costs to move to more affordable states, using flexibility to make more room in their budgets.
As inflation increases, retirees and those leaving the workforce are looking for ways to cut costs themselves, and a similar transition may make sense for those who are freed from the burden of going to an office.
Considering these, the ranking of the most tax-friendly states is as follows;
● Alaska
● Delaware
● Wyoming
● Florida
● New Hampshire