What is income tax?
The income tax is set to a direct tax, natural character and subjective, which is levied on personal income. In other words, it is a tax on income or gain that has occurred from an investment or a return on capital. You can also try the product of a dependent or independent.In simpler terms, the income tax is a tax, as already said, those charged on income or income that are configured as earnings or profits. These revenues come from one thing or activity constituting income, from all earnings, profits and capital gains received or accrued which, whatever its nature, origin and description.
This tax has its roots in the Middle Ages to the late eighteenth century, in the form of customs and inheritance. This arises in Europe, specifically in England, when he established the collection of a special tax that was intended to cover the costs of exceptional needs. This practice was later transferred and assumed by other countries such as Germany, France in Europe, and in the new continent, the United States, as well as certain countries in Latin America, where it was assumed to be a temporary tax collection, but was implanted as a permanent collection.
As this is an income tax, you need to understand clearly what this is, which is established as the net taxable income or taxable called. Among taxable income are those obtained from a dependent relationship work, or those obtained from single-person businesses or companies or companies that are incorporated. Are also considered, within this group, income from financial returns generated from investments of capital, those from inheritances or lottery awards, exports, copyrights or patents.Whereas this type of income, the tax base is constituted as the difference between taxable income and deductions, so, you get the taxable amount will be subject to the tax to be paid.
Another important concept used in many countries, is the tax brackets. This is that the income tax does not grow linearly with the profits, earnings or salary of a person, but the percentage increases to tax “tranches”, so it remains fixed until a certain amount stipulated in applicable law, then increase and remain fixed in their percentage until earnings reach a new value. Therefore, is that in these cases it is convenient to derive part of their salary as pension savings instruments and other volunteers that allow lower taxes and optimize the use of resources for each person. Therefore arises to give information to decide the best use of our money.