...Withholding tax Withholding tax is tax deducted at source from income earned by a taxpayer on a qualifying transactions, investment or income stream. It is designed to capture tax and information on transactions to prevent tax evasion. Relevant Tax laws 1) Companies Income Tax Act 2) Personal Income Tax Act 3) Tax regulations introduced from time to time by minister of finance: (a). S.I. of 1997 – personal income tax [rates, etc. of tax deducted at source (withholding tax ) regulations] (b) S.I.10 of 1997 – companies income tax [rates, etc. of tax deducted at source (withholding tax) regulations] (c) Personal income tax [rates, etc. of tax deducted at source (withholding tax amendment) regulations of 2000] . Tax rates Qualifying income: Divined ,rent or interest RoyaltyHire of equipment , motor vehicles ,plant & machineryAll commissions, consultancy, technical & management fees, legal fees, audit fees, listing fees and other professional fees. Building ,construction or related activityAll types of contracts & agency arrangement ,other than sales in the ordinary course of businessDirector’s fees | Recipient | | Companies 10%15%10% 10% 5%5% 10 | Individuals10%15%10% 5% 5% 5%10 | Rates are reduced to 7.5% on dividend, rent, interest or royalty for entities operating in double taxation treaty countries. Tax on dividend, rent, interest or royalty is final tax for non –resident companies. Dividends distributed from...
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...NC-4 Web 12-09 North Carolina Department of Revenue Marital Status Employee’s Withholding Allowance Certificate Social Security Number Single First Name (USE CAPITAL LETTERS FOR YOUR NAME AND ADDRESS) M.I. Last Name Head of Household Married or Qualifying Widow(er) Address County (Enter first five letters) City State Zip Code (5 Digit) Country (If not U.S.) (See Form NC-4 Instructions before completing this form) 1. Total number of allowances you are claiming (From Line F of the Personal Allowances Worksheet on Page 2) 2. Additional amount, if any, you want withheld from each pay period (Enter whole dollars) , .00 Check Here Check Here 3. I certify that I am not subject to North Carolina withholding because I meet the following two conditions: • Last year I was entitled to a refund of all State income tax withheld because I had no tax liability; and • This year I expect a refund of all State income tax withheld because I expect to have no tax liability. 4. I certify that I am not subject to North Carolina withholding because I meet the requirements of the Military Spouses Residency Relief Act and I am legally domiciled in the state of ____________________________________________. (Enter state of domicile) If line 3 or line 4 above applies to you, enter the year effective 20 and write “EXEMPT” here 5. I certify that I no longer meet the requirements for exemption on line 3 or line 4 (Check applicable box) Therefore,...
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...Business 170 – CVS2 - Final Project | Analysis of Current Withholding Tax Policy | Andrea Smith - 7018051 | Table of Contents Executive Summary 3 Introduction 4 Analysis and Discussion 5 Recommendation 11 Appendix 1 - Result of Access Query – Annual Management Salaries 12 Appendix 2 - Result of Access Query – Annual Office Wages 13 Appendix 3 - Result of Access Query – Annual Production Wages 14 Appendix 4 - Excel Worksheet – Annual Management Salaries 16 Appendix 5 - Excel Worksheet – Annual Office Wages 17 Appendix 6 - Excel Worksheet – Annual Production Wages 18 Appendix 7 - Excel Worksheet – Employee Tax 20 Appendix 8 – Comparison of Tax Withholding Policy Graphs 24 Executive Summary This report is a summarization of the results acquired utilizing the current tax withholding policy of Smith Consulting for the 2009 taxation year. It will show the classification of employees into different departments, as well as for the company as a whole, and their annual income as well as the income taxes withheld, and income taxes payable per employee. This report explains how Excel and Access were utilized to obtain the results as well as including both linked and unlinked copies of the data as appropriate. The conclusion of the report is a recommendation of how to change the current tax withholding policy to ensure that no employees will have income tax payable, and only management will receive a refund of over $2000.00 in future years. Introduction ...
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...standard of living. Corporations deal with double taxation too, as a corporation pays taxes on its earnings only to have its shareholders taxed once more. Double tax treaties comprise of agreements between two countries, which, by eliminating international double taxation, promote exchange of goods, persons, services and investment of capital. These are bilateral economic agreements where the countries concerned evaluate the sacrifices and advantages which the treaty brings for each contracting state, including tax forgone and compensating economic advantages. Double taxation arises when an individual or business acquiring income in a foreign country is required to pay taxes on that income in both the foreign country as well as the country of origin. For example, an American company operating in a developing country, in the absence of a tax treaty between the two countries may have to pay a withholding tax to the government of the developing country, as well as corporation tax to the United States government. Double taxation is always considered to be one of the most important issues in international taxation. With the more and more business moving towards globalization and cross-border investment, double taxation is often cited as a major obstacle to liberate economic progress. There are basically three types of systems for double taxation relief, the exemption system,...
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...Case law analysis Name Institution Professor Course Date United States vs Quality Stores Inc The case of United States government vs quality stores, Inc. was argued on 14th January, 2014 and decided on 25th march 2014. The plaintiff was the United States government with the petitioner being quality stores, Inc. the respondent was accused of making severance payments to its involuntarily terminated employees. The payments made varied depending on the seniority of the employees and the time they served and was not connected to receipts of the state insurance for unemployment. This led to the respondent withholding inter alia taxes that were supposed to be paid to the state as per the Federal Insurance Contribution Act (United States vs Quality stores Inc. et al, 2014). The disagreement occurred since Quality stores Inc. believed that severity payments were not taxable as per the Federal Insurance Contributions Act and was seeking a reimbursement on behalf of itself and its 1850 terminated former employees. Proceedings were initiated at the bankruptcy court since the internal revenue service never allowed or denied the refund and ultimately, the summary judgement made went in favor of Quality store Inc. The district court and the sixth circuit courts of the appeal concluded that severance payments never amounted to wages under the federal insurance contribution act. This ruling was made despite FICA’s definition of wages broadly incorporating any form of remuneration...
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...when your personal or financial situation changes. Exemption from withholding. If you are exempt, complete only lines 1, 2, 3, 4, and 7 and sign the form to validate it. Your exemption for 2013 expires February 17, 2014. See Pub. 505, Tax Withholding and Estimated Tax. Note. If another person can claim you as a dependent on his or her tax return, you cannot claim exemption from withholding if your income exceeds $1,000 and includes more than $350 of unearned income (for example, interest and dividends). Basic instructions. If you are not exempt, complete the Personal Allowances Worksheet below. The worksheets on page 2 further adjust your withholding allowances based on itemized deductions, certain credits, adjustments to income, or two-earners/multiple jobs situations. Complete all worksheets that apply. However, you may claim fewer (or zero) allowances. For regular wages, withholding must be based on allowances you claimed and may not be a flat amount or percentage of wages. Head of household. Generally, you can claim head of household filing status on your tax return only if you are unmarried and pay more than 50% of the costs of keeping up a home for yourself and your dependent(s) or other qualifying individuals. See Pub. 501, Exemptions, Standard Deduction, and Filing Information, for information. Tax credits. You can take projected tax credits into account in figuring your allowable number of withholding allowances. Credits for child or dependent care expenses and the...
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...withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes. Exemption from withholding. If you are exempt, complete only lines 1, 2, 3, 4, and 7 and sign the form to validate it. Your exemption for 2014 expires February 17, 2015. See Pub. 505, Tax Withholding and Estimated Tax. Note. If another person can claim you as a dependent on his or her tax return, you cannot claim exemption from withholding if your income exceeds $1,000 and includes more than $350 of unearned income (for example, interest and dividends). Exceptions. An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee: • Is age 65 or older, • Is blind, or • Will claim adjustments to income; tax credits; or itemized deductions, on his or her tax return. The exceptions do not apply to supplemental wages greater than $1,000,000. Basic instructions. If you are not exempt, complete the Personal Allowances Worksheet below. The worksheets on page 2 further adjust your withholding allowances based on itemized deductions, certain credits, adjustments to income, or two-earners/multiple jobs situations. Complete all worksheets that apply. However, you may claim fewer (or zero) allowances. For regular wages, withholding must be based on allowances you claimed and may not be a flat amount or percentage of wages. Head of household. Generally, you can claim head of household filing status...
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...I:14-1 Chapter I:14 Special Tax Computation Methods, Tax Credits and Payment of Tax Discussion Questions I:14-1 Most taxpayers are not subject to the alternative minimum tax (AMT) because they do not have substantial tax preferences and AMT adjustments and because there is a liberal exemption amount to reduce the tax base on which the AMT is calculated. However, more and more taxpayers in recent years are being subjected to the AMT. p. I:14-2. I:14-2 No, the alternative minimum tax does not apply if an individual's tentative minimum tax under the AMT rules is less than his regular tax liability. It applies only if the tentative minimum tax exceeds the regular tax liability. p. I:14-3. I:14-3 b. only. Only excess depreciation for real property placed in service before 1987 is a tax preference item. For tax years prior to 1987, net long-term capital gains were a tax preference item (i.e., the 60% long-term capital gain deduction) and for taxable years prior to 1993 the appreciated element related to charitable contributions of capital gain real property was a tax preference item. p. I:14-4. I:14-4 a, b, c only. Itemized deductions that are not allowed in computing AMTI, excess depreciation on real property placed in service after 1986, and excess MACRS depreciation for personal property placed in service after 1986, are all AMT adjustments. Tax-exempt interest is not an AMT adjustment but may be a tax preference item if the bonds are private activity bonds. pp...
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...Amy Nguyen June 10, 2012 Court Case Brief Donald R and Joyce D. Schroerlucke, v. United States, 2011 WL 4440599 (Fed.Cl.), cert. Granted, No. 09-772T (9/21/2011) Facts Plaintiffs, Donald and Joyce Schroerlucke, filed a complaint in the United States Court of Federal Claims alleging they were due a tax refund for unreimbursed losses for the 1997, 1998, 1999, and 2002 tax years. Plaintiffs are husband and wife who filed joint federal income tax returns during all years relevant to this action. In each of those years, the plaintiffs were residents of the State of Georgia. Plaintiff Donald Schroerlucke is a former employee of WorldCom, Inc. In 1989, Mr. Schroerlucke was employed as Vice President of Operations at Long Distance Discounts Services, Inc., the predecessor corporation to WorldCom. Pursuant to stock option agreements with Long Distance Discount Services, Inc., and then with WorldCom, Mr. Schroerlucke accumulated employee stock option grants between July 1991 and January 1998. Mr. Schroerlucke’s employment with WorldCom ended on January 4, 1999, at which time his stock options became fully and immediately vested according to the terms of the stock option agreements and an April 7, 1998 memorandum titled, “WorldCom Employee Stock Option Program,” once his employment ended, Mr. Schroerlucke was required to immediately exercise all of his employee stock options. The April 7, 1998 memorandum stated in part: “Please note that under WorldCom Inc. 1997 Stock...
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...problems are associated with the mass invasion of immigrants into the United States. The illegal immigrant crisis is not one of discrimination, or racism it is financial. The federal benefits that illegal immigrants receive are a financial drain to every American taxpayer. Illegal immigrants annually cost taxpayers billions of dollars. Population demographics of illegal immigrants Based on the March 2008 Current Population Study (CPS) ( 2008) conducted by the United States Consensus Bureau, there are roughly 12 million illegal immigrants living in the United States, this equals the combined populations of Iowa, New Mexico, and Arizona. Researchers with the Pew Hispanic Center, estimate that a half million illegal immigrants cross over the border every year. Of the 12 million illegal immigrants that have crossed over, 1.5 million are children. In October 2008, Passel and Cohen compiled a study on unauthorized immigrant trends and demographics. They concluded that the majority of adult illegal immigrants did not graduate from high school; in fact, one-third had less than a ninth-grade education. Whereas, 90% of American citizens with the same economic standing had finished high school. In a different study conducted by Passel and Cohen, (2009), A Portrait of Unauthorized Immigrants in the United States, approximately 8.8 million illegal immigrant households can be found across the United States. Listed below are some typical characteristics of illegal immigrant households: ...
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...www.pwc.com/ro The Romanian Tax Pocket Book 2011 Edition TaxOnline.ro is the online solution that brings PwC professional tax services to the internet. We invite you to visit the website (www.taxonline.ro) and to enrol for a FREE 30-day trial to We invite you to visit the website (www.taxonline.ro) and to enrol for a FREE 30-day trial to our PREMIUM our PREMIUM subscription. After the expiry of the free trial period, access can be available for subscription. After the expiry of the free trial period, access can be available for the following types of the following types of subscriptions: subscriptions: STANDARD subscription - FREE STANDARD subscription - FREE TaxOnline.ro is the online solution that brings PwC professional tax services to the internet. • Daily Tax Update & Tax and Legal Alerts Daily Tax Update & Tax and Legal Alerts • Romanian, EUEU and Intl taxation regulatory section Romanian, and Intl taxation - - regulatory section Read only access to the TaxOnline Forum • Read only access to the TaxOnline Forum PREMIUM subscription Access to analysis and opinions of of our consultants on hot taxissues Access to analysis and opinions our consultants on hot tax issues Ability to a question online and receive a a response from our PwC consultants Ability to askask a question online and receive response from our PwC tax consultants FullFull participation our TaxOnline Forum participation in in our TaxOnline Forum Daily Tax Update & Tax and Legal Alerts Daily Tax...
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...GENERAL AUDIT PROCEDURES AND DOCUMENTATION 1. When does the audit process begin?The audit process commences with the issuance of a Letter of Authority to a taxpayer who has been selected for audit. 2. What is a Letter of Authority? The Letter of Authority is an official document that empowers a Revenue Officer to examine and scrutinize a Taxpayer’s books of accounts and other accounting records, in order to determine the Taxpayer’s correct internal revenue tax liabilities. 3. Who issues the Letter of Authority? Letter of Authority, for audit/investigation of taxpayers under the jurisdiction of National Office, shall be issued and approved by the Commissioner of Internal Revenue, while, for taxpayers under the jurisdiction of Regional Offices, it shall be issued by the Regional Director. 4. When must a Letter of Authority be served? A Letter of Authority must be served to the concerned Taxpayer within thirty (30) days from its date of issuance, otherwise, it shall become null and void. The Taxpayer shall then have the right to refuse the service of this LA, unless the LA is revalidated. 5. How often can a Letter of Authority be revalidated? A Letter of Authority is revalidated through the issuance of a new LA. However, a Letter of Authority can be revalidated— Only once, for LAs issued in the Revenue Regional Offices or the Revenue District Offices; or Twice, in the case of LAs issued by the National Office. Any suspended LA(s) must be attached to the new LA issued (RMO...
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...2014/2015 TANZANIA TAX GUIDE INCOME TAX FOR CORPORATIONS: Corporation rate % Resident corporation 30 Non-resident corporation *30 Newly listed companies – reduced rate for 3 years **25 Alternative minimum tax (on turnover) *** 0.3 Total income of a domestic permanent establishment (branch profit) 30 Capital deductions Buildings (straight line) Agriculture or livestock/fish farming Other 20 5 Plant and machinery (initial allowance) Manufacturing or tourism 50 Agriculture 100 Plant & machinery (reducing balance) Class 1 Class 2 Class 3 37.5 25 12.5 Intangible assets (straight line) Over useful life Agriculture - improvements/research and development 100 Mining exploration and development 100 Oil & Gas prospecting, exploration and development (straight line) 20 * A non-resident corporation with a Domestic Permanent Establishment (DPE) also has to account for tax of 10% on "repatriated income" ** Provided at least 30% of shares are publicly issued *** Where tax losses for 3 consecutive years Correspondent firm of Russell Bedford International www.russellbedford.com www.habibadvisory.com Page 1 of 16 2014/2015 TANZANIA TAX GUIDE INCOME TAX FOR INDIVIDUALS IN TANZANIA MAINLAND: Individual Income Tax Rates – for Tanzania Mainland: Income Range (monthly) Tshs Tax rate (PAYE) % 0 – 170,000=00 NIL 170,000=00 – 360,000=00 12% of the amount in excess of Tshs. 170...
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...Who Are Employees? . . . . . . . . . . . . . . . . . . . . 11 3. Family Employees . . . . . . . . . . . . . . . . . . . . . . 12 4. Employee's Social Security Number (SSN) . . . 13 5. Wages and Other Compensation . . . . . . . . . . . 14 6. Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 7. Supplemental Wages . . . . . . . . . . . . . . . . . . . . 18 8. Payroll Period . . . . . . . . . . . . . . . . . . . . . . . . . . 20 9. Withholding From Employees' Wages . . . . . . . 20 10. Required Notice to Employees About the Earned Income Credit (EIC) . . . . . . . . . . . . . . 24 11. Depositing Taxes . . . . . . . . . . . . . . . . . . . . . . 25 12. Filing Form 941 or Form 944 . . . . . . . . . . . . . . 30 13. Reporting Adjustments to Form 941 or Form 944 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 14. Federal Unemployment (FUTA) Tax . . . . . . . . 35 15. Special Rules for Various Types of Services and Payments . . . . . . . . . . . . . . . . . 37 16. How To Use the Income Tax Withholding Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Cat. No. 10000W Publication 15 (Circular E), Employer's Tax Guide For use in 2013 Future Developments For the latest information about developments related to Publication 15 (Circular E), such as legislation enacted after it was published, go to www.irs.gov/pub15....
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.... . . . . . . . . . . . . . . . . . . . . . . 11 5. Wages and Other Compensation . . . . . . . . . . . . 11 6. Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 7. Supplemental Wages . . . . . . . . . . . . . . . . . . . . . 15 8. Payroll Period . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 9. Withholding From Employees’ Wages . . . . . . . . 16 10. Required Notice to Employees About the Earned Income Credit (EIC) . . . . . . . . . . . . 20 11. Depositing Taxes . . . . . . . . . . . . . . . . . . . . . . . 20 12. Filing Form 941 or Form 944 . . . . . . . . . . . . . . 24 13. Reporting Adjustments to Form 941 or Form 944 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 14. Federal Unemployment (FUTA) Tax . . . . . . . . . 28 15. Special Rules for Various Types of Services and Payments . . . . . . . . . . . . . . . . . . 30 16. How To Use the Income Tax Withholding Tables . . . . . . . . . . . . . . . . . . . . . 35 2012 Income Tax Withholding Tables: Percentage Method Tables for Income Tax Withholding . . . . . . . . . . . . . . . . . . . . . . 36–37 Wage Bracket Method for Income Tax Withholding . . . . . . . . . . ....
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