Personal Tax tagged posts

Family Tax Breaks Cause Disparity in S.Korea

November 24, 2016 Taxation in South Korea

Tax breaks for Korean families with childrenSEOUL – Efforts by the government of South Korea to boost the national birthrate through tax breaks have led to a growing divide between the taxes paid by families and single people.

Tax benefits available to couples with children in South Korea have effectively increased the disparity between taxes paid by families and single taxpayers in the country, according to the results of new research released in the journal of the Korea Academic Society of Taxation.

South Korea has several tax breaks available for families with children, with the breaks being cumulative for more than one child.

The tax measures were enacted in order to counter the country’s dwindling birth rate, which currently sits at approximately 1...

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IRS Audits 1 out of 120 US Households

April 1, 2016 Taxation in USA

WASHINGTON D.C. – In 2015 the IRS focussed its audits on individuals with incomes of more than USd 10 million and on individuals claiming to have no income at all.

Over the course of 2015 1 228 117 individual income tax returns were audited by the US Internal Revenue Service, according to a statement issued on March 31st by the US think tank the Tax Foundation.

Approximately 0.8 percent of all filers were audited during 2015, a rate equivalent to an estimated 1 in every 120 households in the country.

The Tax Foundation found that taxpayers were more likely to be audited if they had high levels of income or, conversely, reported no income.

Approximately 35 percent of all filers with incomes higher than USD 10 million were audited, with 19 percent of those earning between USD 5 million and...

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Israel Caps Executives’ Salaries

March 30, 2016 Taxation in Israel

These won't get you far in Israel.JERUSALEM – Fifty high-level executives of banks and financial institutions in Israel will soon face salary cuts, as new tax rules are brought in to cap excessive pay packets.

Earlier this week the parliament of Israel approved tax changes aimed at capping the salaries of high-level executives at a maximum of ILS 2.5 million (approx. USD 657 thousand) in order to reign in income inequality.

Any salary payments of over ILS 2.5 million per year paid by a bank or financial institution will no longer be deductible when calculating corporate income tax obligations of the business.

The new regulations will also apply to small financial institutions which do not pay such high salaries, but still have a wide pay disparity between top-level and bottom-level workers, as any salary which more than 3...

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UK’s Marriage Tax Break a “Complete and Utter Flop”

February 16, 2016 Taxation in UK

Calculator and MoneyLONDON – The UK’s tax break for married couples has proven unsuccessful, with only 8 percent of eligible taxpayers bothering to register for the GBP per week concession.

Earlier this week the UK government’s tax break for married couples was described as a “complete and utter flop” by the opposition Labour Party, as new data reveals that uptake of the new tax break is a fraction of what was originally expected.

The tax break for married couples allows a transfer of GBP 1 060 worth of personal tax allowances between married couples and partners in a civil union, a move which could result in tax savings of up to GBP 212 per year for the couple.

Currently the personal tax allowance threshold is set at GBP 10 600, an amount under which a person does not need to pay any income tax.

The...

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India Drops Tax on Gold Deposits

January 25, 2016 Taxation in India

gold in indiaNEW DELHI – The government of India is hoping to make use of the vast reserves of gold held by consumers in the country, and is now offering tax benefits to taxpayers willing to deposit their gold and jewellery in the Gold Monetization Scheme.

Late last week the government of India announced that the regulations of the national Gold Monetization Scheme will be amended to make it more attractive for consumers, and also that the gains made by taxpayers from the scheme will be exempt from taxation.

The Gold Monetization Scheme allows the public to deposit any gold jewellery, bars, or coins for a pre-set period of time in exchange for interest redeemable in gold or money.

The interest rate can be repaid either as more gold, or as money, with the amount to be paid back to be set based on the p...

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