Presentation - tax

Analysis of federal income tax in US Members of group : Nguyễn Thảo Linh – 1214150090 Nguyễn Mai Thanh – 121150128 Đỗ Trường Giang – 121115039 Nguyễn Thị Loan Đặng Thùy Linh Nguyễn Thị Hồng Anh – 1217250013 – 121415020 – 1217150021 CONTENT GENERAL INFORMATION GENERAL INFORMATION PERSONAL INCOME TAX  TAXPAYERS: ALL CITIZENS AND RESIDENTS OF THE UNITED STATES, REGARDLESS OF THE STATE (WHAT IS “PAY-AS-YOU-GO” TAX SYSTEM?)  TAXABLE INCOME:  WAGES AND SALARIES  EMPLOYEE COMPENSATION (INCLUDING TIP, UNEMPLOYMENT COMPENSATION, GAMBLING INCOME AND LOSSES)  FRINGE BENEFITS  INTEREST RECEIVED, DIVIDENDS, CAPITAL GAINS AND LOSSES  SCHOLARSHIP AND FELLOWSHIP GRANTS  BUSINESS INCOME  PENSIONS AND ANNUITIES  NON-TAXABLE INCOME:  CHILD SUPPORT PAYMENTS  GIFTS, BEQUESTS AND INHERITANCES  SCHOLARSHIP AND FELLOWSHIP GRANTS WHO PAID HOW MUCH? GENERAL INFORMATION CORPORATE INCOME TAX  TAX PAYERS: C CORPORATIONS (WHICH IS TAXED SEPARATELY FROM ITS OWNERS) I.E ALL BUSINESSES EXCEPT FOR PARTNERSHIPS  TAXABLE INCOME: BUSINESS INCOME CAPITAL GAINS AND LOSSES INTEREST RECEIVED DIVIDENDS PASSIVE ACTIVITIES (LOSSES AND CREDITS) STOCK OPTIONS EXCHANGE OF POLICYHOLDER INTEREST FOR STOCK ETC  NON-TAXABLE INCOME:  SIMILAR TO PERSONAL INCOME TAX CALCULATION OF FEDERAL INCOME TAX EXAMPLE OF CALCULATION OF FEDERAL INCOME TAX IN US EXAMPLE: Semi-monthly Salary: Marital Status: SRA (Reduction): Supplemental Retirement Annuity Health Insurance Premium $2,100 Married $100 $ 39.50 methods: percentage method (Intuit Online Payroll), Wage bracket method, Supplemental method ANSWER STEP 1: STEP 2: $ 2,100.00   Semi-monthly earnings -   100.00   Less SRA - 39.50   Less Health Insurance Premium $ 1,857.18   Taxable Gross Wages $ 1,857.18   -  1,127.00   $730.18 x 15% = $109.52 + $76.90  = $186.42 Federal Income Tax TABLE 2: MARRIED PERSON - INCLUDING HEAD OF HOUSEHOLD Over But not over of excess over $ 358 $ 1,127 .10% $ 358 $ 1,127 $ 3,479 .$    76.90 plus 15% $ 1,127 $ 3,479 $ 6,658 .$   429.70 plus 25% $ 3,479 $ 6,658 $ 9,960 .$ 1,224.45 plus 28% $ 6,658 $ 9,960 $ 17,504 .$ 2,149.01 plus 33% $ 9,960 $ 17,504 $ 19,727 .$ 4,638.53 plus 35% $ 17,504 $ 19,727 $ 5,416.58 plus 39.6% $ 19,727 If the amount of wages or the amount of income tax to withhold is (following the above table) Or Not over $358 , this equals COMPARING BETWEEN CIT IN VN WITH FIT IN US FOR METHOD OF CALCULATION INCOME TAX Criteria CIT in VN Object Corporate taxable Formul Income x tax rate a Income = Sales turnover - cost Tax Tax rates are determined for each type of rate enterprise Example : tax rate for domestic business establishments and foreign organizations and individuals doing business in Vietnam not under foreign investment law is 32 % Taxing Business establishments with high income, it times will pay tax at the rate of 32 % Then the enterprise will pay tax at the rate of 25 % if the income remaining is higher than 12 % residual equity value existing at the time of finalization of year PIT in VN Individual Income x tax rate FIT in US Individual, Corporate Partnerships not pay taxes Taxable income = Gross income – deductions Tax payable = taxable income x tax rate Tax rates determined based on the amount and Personal tax rates and corporate tax rates type of personal income The corporate tax rate by the amount of income Eg: Earn 5mil/month and income from capital that now earn investment => rate 5% Personal tax rates are based on the amount of income and marital status none Example: Individuals with incomes $ - $ 9.225 and singles The tax rate is 10 % C Corporate is taxed times THE EFECTS OF FEDERAL INCOME TAX IN US THE EFFECT OF FEDERAL INCOME TAX IN US ROLE OF TAX EXAMPLE ABOUT THE EFFECT FEDERAL INCOME TAX IN US SOME DOUBTS ABOUT US FIT THE SYSTEM IS TOO COMPLICATED THE US CURRENT TAX CODE IS ALSO UNFAIR TO THE WEALTHY AND FAVORS THE POOR THERE ARE STILL DOMESTIC TAXES ON PRODUCTS FOR SALE OVERSEAS => COMPANIES SUFFER ... GENERAL INFORMATION PERSONAL INCOME TAX  TAXPAYERS: ALL CITIZENS AND RESIDENTS OF THE UNITED STATES, REGARDLESS OF THE STATE (WHAT IS “PAY-AS-YOU-GO” TAX SYSTEM?)  TAXABLE INCOME:  WAGES AND SALARIES... Individual Income x tax rate FIT in US Individual, Corporate Partnerships not pay taxes Taxable income = Gross income – deductions Tax payable = taxable income x tax rate Tax rates determined... CIT in VN Object Corporate taxable Formul Income x tax rate a Income = Sales turnover - cost Tax Tax rates are determined for each type of rate enterprise Example : tax rate for domestic business