What is taxable income and how is it calculated?
Taxable income is a direct tax based on the income of companies and individuals. The calculation of this type of tax is based on a common rate. If you want to know more about taxable income and how to calculate it, to your notebook.
Information on taxable income
A taxable income is an individual and household deduction that is made by the tax authorities. For more information, please visit this site. This income is deducted from all the financial resources obtained in a tax household which among others: disability and alimony pensions, fixed-income investment products, social rights, and mobilization values, the treatment of bonuses, allowances and salaries, the Profits obtained on trade and industry, the profit realized in the sale and resale of fixed assets.
Method of calculating taxable income
Taxable income is essentially calculated in three phases. The first phase involves adding up your net categorical income. This phase involves putting together the resources deducted by the tax household and the elements of taxable income listed above. Then the second phase consists of deducting the actual expenses or applying a flat-rate deduction of 10%. It is sometimes difficult to know your taxable income, but if you apply 10% to the salary amount, you can get it. In practice, it is the tax administration that does this work of deducting the taxpayer's declared salary. The taxpayer can choose between the deduction of actual expenses and the 10% deduction. The third and final phase consists of deducting the expenses from the net amount. The expenses to be deducted are, among others: alimony payments made to minors or adults who are connected. Farming losses or losses of land, benefits that are compensated following the separation of the spouses. Expenses for the care of an elderly person. There are several types of tax to which individuals and public or private companies are subject.