• Home
  • Sitemap
  • About Us
  • Write Us
Over Head Productions

  • Finance
  • Corporate
  • Management
  • Sales
  • Business
  • Home
  • Finance
  • What Kind of Income Tax Solutions Available Now?

What Kind of Income Tax Solutions Available Now?

Clare Louise
October 12, 2020 No Comments

The withholding of income tax (IR) will enter into force on 1st January 2019. In relation to the application of withholding tax, the employer in his capacity as collector, has several bonds respect.

Application of the rate transmitted by the tax administration

The employer must use the rate transmitted by the tax authorities and apply it to the income subject to income tax of each employee.

  • The rate of withholding tax is made available to the employer by means of a report drawn up by the tax administration in return for each registered social declaration.
  • The tax administration is the only interlocutor for the calculation of the rate of the withholding tax. If an employee wants to adjust his rate, he applies to the tax authorities directly. In all cases, the employee must not give any information to his employer.
  • Finally, the rate transmitted by the tax authorities to the employer is subject to professional secrecy.

Social security contributions on earned income (9.70%) apply to the part of the gross amount of dividends that exceeds the above limit. The CSG is calculated here at the rate of 9.20%, on the gross amount of dividends less any deduction of 1.75%.

The CSG deductible on dividends

The possibility of deducting part of the CSG paid on dividends depends on the tax methods chosen.

Imposition of the flat-rate IR deduction of 12.80%

In principle, dividends bear the flat-rate income tax deduction of 12.80% and social contributions at the rate of 17.20% (global deduction of 30%). In this case, the entire CSG paid is not deductible from the overall taxable income. Make the calculations with the tax return estimator for the best understanding.

Option for the taxation of dividends at the progressive IR scale

On the other hand, the company director who opts for the taxation of income from movable capital at the progressive scale of income tax can deduct part of the CSG.

In this case,  the paid CSG is deductible from the overall taxable income up to 6.80%.

The CSG deductible on the manager’s other income from movable capital

Application of the CSG on interest and capital gains

Interest paid into a partner’s current account and capital gains are subject to social security contributions at the rate of 17.20%. The CSG is here calculated at the rate of 9.90%.

The CSG deductible on interest and capital gains on disposal

The principle is exactly the same as for dividends:

In the event that interest is taxed on the flat-rate IR deduction of 12.8%, the entire CSG paid is not deductible from the overall taxable income.

In the event of an option for the taxation of income from movable capital at the progressive IR scale, the paid CSG is deductible from the overall taxable income up to 6.80%.

The deductible CSG for micro-entrepreneurs

The micro-entrepreneurs are being applied, each month or quarter, at a flat rate of social security contributions on the amount of revenue they cashed. For them, no CSG is deductible from the overall taxable income.

How to deduct the deductible part of the paid CSG?

The deductible CSG must be set off against the overall taxable income of the year in which the contribution was paid. It is therefore deducted from the income for the year of its payment. Normally, the CSG is automatically deducted from most income. It is therefore simply necessary to verify that the pre-filled amount is correct.

Post navigation

The Most Common Financial Terms of Forex Market 
Why is Liability Insurance essential for a handyman?

Related Articles

ETF India 2020 – important things to know

Paul Watsen
November 20, 2020 No Comments

HOW SIP WORKS AND HOW TO SET UP SIP GOALS?

Sheri Gill
September 28, 2020September 28, 2020 No Comments

Tax Issues and the Legal Options for You

Clare Louise
September 17, 2020September 17, 2020 No Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Archives

  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018

Categories

  • Business
  • Corporate
  • Featured
  • Finance
  • Management
  • Marketing
  • Sales

Recent Posts

How to Choose a Copyright Attorney Online 

Paul Petersen - Business
February 11, 2021 No Comments

Whether you are running a small startup or a big...

Why Trying To Sell Timeshare Property Is So Hard

January 12, 2021

Eco-Friendly Products Boost Competitiveness

December 19, 2020

Essay Writing Tips: How to Compose an Attractive Work?

December 11, 2020

Advertisement

Tags

accessible accountants brings Company Connected Coping created delivery developing Diablo III figures diligent embarrassing environmental Fully furniture important insurance internet London market marketing Maybe merchandise missing money parents planner players popular pricey probably procedures proficiency protection provide rebellion rubbish services Sheepskin specifically supply teens throw transported While Moving

Thanks for the support

Capital Gains Tax Advice

Latest Posts

How to Choose a Copyright Attorney Online 

February 11, 2021

Why Trying To Sell Timeshare Property Is So Hard

January 12, 2021

Eco-Friendly Products Boost Competitiveness

December 19, 2020

Featured

Copyright @ 2019 overheadproductions.net | All rights reserved. | Theme: OMag by LilyTurf Themes
  • About Us
  • Write Us
  • Corporate
  • Sales
  • Marketing