Types of Taxation ● Income aⅹ o Withholding Tax ° Value- Added Tax McGraw-Hilylrwoin 20-5 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rights
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 20-5 Types of Taxation ⚫ Income Tax ⚫ Withholding Tax ⚫ Value-Added Tax
Income ax o An income tax is a tax on personal and corporate Income Many countries in the world obtain a significant portion of their tax revenue from income taxes An income tax is a direct tax that is one that is paid directly by the taxpayer upon whom it is evie McGraw-Hilylrwoin Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rights
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 20-6 Income Tax ⚫ An income tax is a tax on personal and corporate income. ⚫ Many countries in the world obtain a significant portion of their tax revenue from income taxes. ⚫ An income tax is a direct tax, that is one that is paid directly by the taxpayer upon whom it is levied
Income Tax rates in Selected Countries 45 40 35 30 25 20 口 Income Tax Rate 15 10 5 沙八 McGraw-Hilylrwoin 20-7 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rights
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 20-7 Income Tax Rates in Selected Countries 0 5 10 15 20 25 30 35 40 45 Australia Bahamas Belgium Brazil China France Germany Ireland Japan Mexico United States Rate Income Tax Rate
Withholding Tax o Withholding taxes are withheld from the payments a corporation makes to the taxpayer The taxes are levied on passive income earned by an individual or corporation of one country within the tax jurisdiction of another country o Passive income includes dividends and interest income, income from royalties, patents, or copyrights o a withholding tax is an indirect tax McGraw-Hilylrwoin 20-8 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rights
McGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 20-8 Withholding Tax ⚫ Withholding taxes are withheld from the payments a corporation makes to the taxpayer. ⚫ The taxes are levied on passive income earned by an individual or corporation of one country within the tax jurisdiction of another country. ⚫ Passive income includes dividends and interest income, income from royalties, patents, or copyrights. ⚫ A withholding tax is an indirect tax