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8/4/2019 Tax system of UK, USA , India - slides by Simon (BUBT)
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Tax system and
procedure in different countries (USA, UK,
India)
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India)
No. Name ID No.
01. Simon Haque 018
02. Rubel Rana 012
03. Tanzia Afroz 050
04. Sabiha Binte Hasan 17905. Munia Anwar 006
06. Fardushi Sultana 016
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Taxation in the United States is a complexsystem includes local government, possiblyincluding one or more of municipal, township,district and county governments.
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# Colonial Times
# The Post Revolutionary Era # The Civil War
# The 16th Amendment
# World War I and the 1920's # World War II
# Developments after World War II
# The Evolution of Social Security and Medicare # The Tax Reform Act of 1986
# The Bush Tax Cut
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#Assistant Attorney General for Tax
Division#Deputy Assistant Attorney General for
Policy and Planning
>Office of Legislation, Policy and Management
>Office of Training and Career Development
>Office of Management and Administration
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#Deputy Assistant Attorney General for CriminalMatters
>Northern Criminal Enforcement Section>Southern Criminal Enforcement Section
>Western Criminal Enforcement Section>Criminal Appeals and Tax Enforcement Policy Section
#Deputy Assistant Attorney General for Review andappellate
>Civil Appellate Section>Office of Review
#Deputy Assistant Attorney General for Civil Matters>Central Civil Trail Section>Eastern Civil Trail Section
>Northern Civil Trail Section>Southern Civil Trail Section>Southwestern Civil Trail Section>Western Civil Trail Section>Court of Federal Claims Section
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Alternative minimum tax(AMT).
U.S. capital gains tax.
Corporate income tax.
U.S. estate tax. U.s. excise tax.
U.S. federal income tax.
Federal unemployment tax.
FICA tax (including socialsecurity tax& relatedprograms).
Gasoline tax.
Generation skipping tax.
Gift tax.
IRS (Internal Revenueservice) penalties.
Local income tax. Luxury taxes. Property tax.
Real estate tax. Recreational vehicle tax. Rental car tax. Resort tax. Road usage taxes.
School tax. State income tax. State unemployment tax
etc.
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Alternative Minimum Tax ( AMT ) is part of the Federal income tax
system of the United States.There is an AMT for those who owe personal income tax, and
another for corporations owing corporate income tax.
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AMT Exemption Amounts
1986-1992
1993-2000
2001-2002
2003-2005
2006 2007 2008 Only2009
MarriedFiling
Jointly
40000 45000 49000 58000 62550 66250 69950 70950
Single orHead ofHousehold
30000 33750 33750 40250 42500 44350 46200 46700
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Social security tax formally known as the Federal Insurance and Contributions Act (FICA). This contribution or tax is
6.2% of an employees' income paid
by the employer, and 6.2% paid by
the employee ( 12.4% total).
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Local government usually collectproperty taxes but may also collectcity and county tax. Some cities
collect income tax on not onlyresidents but non-residentsemployed in the city. This tax can
even be incurred when a non-resident works temporarily in thecity.
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In the United States, the federalcorporate income rate for the year
2006 varies between 15% and 39% depending on taxable income.
But for “Check the box system” many corporations are now able toavoid this tax.
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It is generally imposed on thecorporations but also individuals.
In 2003, this rate was reduced to
15% , and to 5% for individuals .
But within 2010 this rate will be at
least 20%.
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Capital Gains Taxation in the United States from 2003 forward
2003-2007 2008-2010 2011-OrdinaryIncomeTax Rate
Short-termCapital
GainsTaxRate
Long-termCapital
GainsTaxRate
Short-termCapital
GainsTaxRate
Long-termCapital
GainsTaxRate
OrdinaryIncomeTax Rate
Short-termCapital
GainsTaxRate
Long-
term
CapitalGains
Tax Rate 10% 10% 5% 10% 0% 15% 15% 10%
15% 15% 5% 15% 0%
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Corporate tax or company tax refers to a tax imposed on entities that are taxed at the entity level in a particular
jurisdiction.
Rates: Federal 15% to 35%.
States:0%
to10%
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The Medicare tax funds the Medicareprogram, a health insurance program for
the elderly and disabled. 1.45% of the
employee's income is paid by theemployer as Medicare tax, and 1.45%
is paid by the employee.
For Self-Employed people, Medicare
taxes are fixed at 2.9% on all earnings
(can be offset by income tax provisions.)
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To calculate the property
tax, the authority will multiply the assessed
value of the property by the mill rate and then divide by 1,000 .
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The federal telephone excise tax
is a statutory federal excise taximposed under the InternalRevenue Code in the United
States under 26 U.S.C. § 4251 onamounts paid for certain
"communications services."
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U.S. States with a flat rate personal income tax
The following states have a flat rate personalincome tax:
Colorado- 4.63% Illinois - 3%
Indiana - 3.4%
Massachusetts - 5.3%
Michigan- 4.35%
Pennsylvania - 3.07%
Utah- 5%
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MarginalTax Rate
Single Married Filing Jointly or Qualified Widow(er)
Married Filing Separately
Head of Household
10% $0 – $8,375$0 – $16,750 $0 – $8,375 $0 – $11,950
15%$8,376 – $34,000 $16,751 – $68,000 $8,376 – $34,000 $11,951 – $45,550
25%$34,001 – $82,400 $68,001 – $137,300 $34,001 – $68,650 $45,551 – $117,650
28%$82,401 – $171,850 $137,301 – $209,250 $68,651 – $104,625 $117,651 – $190,550
33%$171,851 – $373,650 $209,251 – $373,650 $104,626 – $186,825 $190,551 - $373,650
35%$373,651+ $373,651+ $186,826+ $373,651+
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Partial History ofU.S. Federal Marginal Income Tax Rates
Since 1971
Applicable
Year Income
brackets First
bracket Top
bracket Source 1971-1981 15 brackets 14% 70% IRS 1982-1986 12 brackets 12% 50% IRS
1987 5 brackets 11% 38.5% IRS 1988-1990 3 brackets 15% 28% IRS 1991-1992
3 brackets
15%
31%
IRS
1993-2000 5 brackets 15% 39.6% IRS
2001 5 brackets 15% 39.1% IRS 2002 6 brackets 10% 38.6% IRS
2003-2009 6 brackets 10% 35% Tax Foundation
T U S F d l i l i t t f 1913 t 2009
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Top U.S. Federal marginal income tax rate from 1913 to 2009.
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Rank State Gross collections
(2007) Population (2007) Revenue per
capita 1 California $313,998,874,000 36,553,215 $8,590.18 2 New York $244,672,914,000 19,297,729 $12,678.84 3 Texas $225,390,904,000 23,904,380 $9,428.85 4 Florida $136,476,423,000 18,251,243 $7,477.65 5 Illinois $135,458,089,000 12,852,548 $10,539.40 6 New Jersey $121,678,423,000 8,685,920 $14,008.70 7 Pennsylvania $112,368,286,000 12,432,792 $9,038.06 8 Ohio $105,772,774,000 11,466,917 $9,224.17
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The Institute of Indirect Taxation is a
professional body in the United Kingdom.
Its members specialize in the study and
practice of indirect taxes. The body was
formed in July 1991 and formally launched
in October 1991. It gained permission to
call itself an institute in December of thesame year. It operates as a company limited
by guarantee.
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Rate Dividend
income
Savings
income
Other income
(inc
employment)
Band (above
any personal
allowance)
Lower rate N/A 10% N/A £0 - £2440applies only if
total income falls
in this band Basic rate 10% 20% 20% £0 - £37,400 Higher rate 32.5% 40% 40% over £37,400 Additional
rate N/A 50% 50% over £150,000
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Estate duty was replaced in 1975 byCapital Transfer Tax, which wasrebranded Inheritance Tax (IHT) in
1986. Partly due to the simple andwidely-used methods which areavailable to avoid it, Inheritance Tax
accounts for about 0.8% of governmentincome, raising around £2 billion in 2001and £3.6 billion in 2006.
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The third largest source ofgovernment revenues is value
added tax (VAT), charged at17.5% (due to increase to 20%
in January 2011) on supplies ofgoods and services.
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Capital gains are subject to
tax at the 18% (forindividuals) or at theapplicable marginal rate of
corporation tax (forcompanies).
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The Central Board of Direct Taxes constituted under theCentral Boards of Revenue Act, 1963 (54 of 1963),
Directors-General of Income-tax or Chief Commissioners
of Income-tax,
Directors of Income-tax or Commissioners of Income-tax
or Commissioners of Income-tax (Appeals),
Additional Directors of Income-tax or
Additional Commissioners of Income-tax or
Additional Commissioners of Income-tax (Appeals),
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Joint Directors of Income-tax or Joint Commissioners of
Income-tax.
Deputy Directors of Income-tax or Deputy Commissioners
of Income-tax or Deputy Commissioners of Income-tax
(Appeals),
Assistant Directors of Income-tax or Assistant
Commissioners of Income-tax,
Income-tax Officers,
Tax Recovery Officers,
Inspectors of Income-tax.
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Short-term Capital gains tax Long-term capital gains tax
Sale transactions of securitieswhich attracts STT:- 10% NIL
Sale transaction of securities
not attracting STT:- Individuals (resident and non-
residents) Progressive slab rates 20% with indexation;
10% without indexation (for
units/ zero coupon bonds)Partnerships (resident and non-
resident) 30% Individuals (resident and non-
residents) 30%
Overseas financial organisationsspecified in section 115AB 40% (corporate)
30% (non-corporate) 10% FIIs 30% 10% Other Foreign companies 40% 20% with indexation;
10% without indexation
Local authority 30% Co-operative society Progressive slab rates
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Description Existing Rate (%) Proposed Rate (%) Difference + - =
(%) Domestic Company
Regular Tax 33.6 33.9 +0.33
MAT 11.22
(of book profits) 11.33
(of book profits) +0.11 DDT 14.025 16.995 +2.97
Foreign Company Regular Tax 41.82 42.33 0.41
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Domestic Corporate Income Taxes Rates Tax Rate Effective Tax Rate
with surcharge
Domestic
Corporations 30% 30%
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Foreign Companies Tax Rates Withholding Tax
Rate for non-treaty
foreign companies Tax Rate for US
companies under the
treaty Dividends 20% 15%
Interest Income 20% 15% Royalties 30% 20%
Technical Services 30% 20% Other Income 55% 55%
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Category Rates Tax on long-term capital gains 20 %
Tax on winnings form lotteries, crossword puzzles, races etc.
40% Tax on any other income
a) domestic company
b) foreign company
35%
48%
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Excise duty rate on items currently attracting 4% to be
raised to 8% with following major exceptions:
Specified food items including biscuits, sharbats, cakes and pastries
Drugs and pharmaceutical products falling under Chapter 30
Medical equipment
Certain varieties of paper, paperboard and articles.
Power driven pumps for handling water
Footwear of RSP exceeding Rs.250 but not exceeding Rs.750 per
pair Pressure cookers
Vacuum and gas filled bulbs of RSP not exceeding Rs.20 perbulb
Compact Fluorescent Lamps
Cars for physically handicapped etc.
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Name of Income Rate Dividend 20% Interest received on loans made in
foreign currency to an Indian concern
or Government of India.
20% Income received in respect of units
purchased in foreign currency 20%
Royalty fees or technical fees For Agreements entered into:
After 31.05.97 but before 01.06.05- @ 20%
After 01.06.05 - @ 10%
Interest on FCCB 10%
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#Domestic companies are permitted todeduct dividends received from otherdomestic companies in certain cases.
#Inter Company transactions are honored ifnegotiated at arm's length.
#Special provisions apply to venture fundsand venture capital companies.
#Long-term capital gains have lower taxincidence.
#There is no concept of thin capitalizationetc.