ABOUT TAXES-WORLDWIDE.COM:

Information about Corporate and Personal World Taxes, Income Tax Rates

Tax is a non-penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received. Some basic explanations about taxes:

Tax collection is performed by a government agency such as Internal Revenue Service (IRS) in the United States, Canada Revenue Agency in Canada or Her Majesty's Revenue and Customs (HMRC) in the UK. In France, taxes are levied by the government, and collected by the public administrations. Taxes in Germany are levied by the Federation (Bund), the States (Länder) as well as the Municipalities (Gemeinden). When taxes are not fully paid, civil penalties or criminal penalties may be imposed on the non-paying entity or individual.

Taxes are most often levied as a percentage, called the tax rate. An important distinction when talking about tax rates is to distinguish between the marginal rate and the effective (average) rate. The effective rate is the total tax paid divided by the total amount the tax is paid on, while the marginal rate is the rate paid on the next dollar of income earned.

An income tax is a tax levied on the income of individuals or businesses. Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs).

A value added tax or value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution.

An offshore financial centre (OFC), though not precisely defined, is usually a small, low-tax jurisdiction specializing in providing corporate and commercial services to non-resident offshore companies, and for the investment of offshore funds.

Would you like to put your company in our directory?