Tax system and procedure in different countries (USA, UK, India)

No.

Name

ID No.
018 012 050 179 006 016

01. Simon Haque 02. Rubel Rana 03. Tanzia Afroz 04. Sabiha Binte Hasan 05. Munia Anwar 06. Fardushi Sultana

Taxation in the United States is a complex system includes local government, possibly including one or more of municipal, township, district and county governments.

# Colonial Times # The Post Revolutionary Era # The Civil War # The 16th Amendment # World War I and the 1920's # World War II # Developments after World War II # The Evolution of Social Security and Medicare # The Tax Reform Act of 1986 # The Bush Tax Cut

#Assistant Attorney General for Tax Division #Deputy Assistant Attorney General for Policy and Planning
>Office of Legislation, Policy and Management >Office of Training and Career Development >Office of Management and Administration

#Deputy Assistant Attorney General for Criminal Matters

>Northern Criminal Enforcement Section >Southern Criminal Enforcement Section >Western Criminal Enforcement Section >Criminal Appeals and Tax Enforcement Policy Section

#Deputy Assistant Attorney General for Review and appellate

>Civil Appellate Section >Office of Review

#Deputy Assistant Attorney General for Civil Matters

>Central Civil Trail Section >Eastern Civil Trail Section >Northern Civil Trail Section >Southern Civil Trail Section >Southwestern Civil Trail Section >Western Civil Trail Section >Court of Federal Claims Section

Alternative minimum tax (AMT). U.S. capital gains tax. Corporate income tax. U.S. estate tax. U.s. excise tax. U.S. federal income tax. Federal unemployment tax. FICA tax (including social security tax& related programs). Gasoline tax. Generation skipping tax. Gift tax.

IRS (Internal Revenue service) penalties. Local income tax. Luxury taxes. Property tax. Real estate tax. Recreational vehicle tax. Rental car tax. Resort tax. Road usage taxes. School tax. State income tax. State unemployment tax etc.

Alternative Minimum Tax (AMT) is part of the Federal income tax system of the United States. There is an AMT for those who owe personal income tax, and another for corporations owing corporate income tax.

AMT Exemption Amounts 19861992 Married Filing Jointly Single or Head of Household 40000 19932000 20012002 20032005 2006 2007 2008 Only 2009 70950

45000 49000 58000 62550 66250

69950

30000

33750 33750 40250 42500 44350

46200

46700

Social security tax formally known as the Federal Insurance and Contributions Act (FICA). This contribution or tax is

6.2% of an employees' income paid by the employer, and 6.2% paid by

the employee (

12.4% total).

Local government usually collect property taxes but may also collect city and county tax. Some cities collect income tax on not only residents but non-residents employed in the city. This tax can even be incurred when a nonresident works temporarily in the city.

In the United States, the federal corporate income rate for the year 2006 varies between 15% and 39% depending on taxable income. But for Check the box system many corporations are now able to avoid this tax.

It is generally imposed on the corporations but also individuals. In 2003, this rate was reduced to

15%, and to 5% for individuals .

But within 2010 this rate will be at
least 20%.

Capital Gains Taxation in the United States from 2003 forward

2003-2007
Ordinary Income Tax Rate

2008-2010
Shortterm Capital Gains Tax Rate Longterm Capital Gains Tax Rate
Ordinary Income Tax Rate

2011ShortLongterm term Capital Capital Gains Gains Tax Rate Tax Rate

Shortterm Capital Gains Tax Rate

Longterm Capital Gains Tax Rate

10% 15%

10% 15%

5% 5%

10% 15%

0% 0%

15%

15%

10%

Rates:

Corporate tax or company tax refers to a tax imposed on entities that are taxed at the entity level in a particular jurisdiction.
Federal 15% to 35%.
States: 0% to 10%

The Medicare tax funds the Medicare program, a health insurance program for the elderly and disabled. 1.45% of the employee's income is paid by the

employer as Medicare tax, and 1.45% is paid by the employee. For Self-Employed people, Medicare
taxes are fixed at 2.9% on all earnings (can be offset by income tax provisions.)

To calculate the property tax, the authority will multiply the assessed value of the property by the mill rate and then divide by 1,000.

The federal telephone excise tax is a statutory federal excise tax imposed under the Internal Revenue Code in the United States under 26 U.S.C. 4251 on amounts paid for certain "communications services."

U.S. States with a flat rate personal income tax The following states have a flat rate personal income tax: Colorado- 4.63% Illinois - 3% Indiana - 3.4% Massachusetts - 5.3% Michigan- 4.35% Pennsylvania - 3.07% Utah- 5%

Marginal Tax Rate

Single

Married Filing Married Filing Jointly or Separately Qualified Widow(er)

Head of Household

10% 15% 25% 28%

$0 $8,375

$0 $16,750

$0 $8,375

$0 $11,950

$8,376 $34,000 $34,001 $82,400

$16,751 $68,000

$8,376 $34,000

$11,951 $45,550

$68,001 $137,300

$34,001 $68,650 $45,551 $117,650

$82,401 $171,850 $137,301 $209,250

$68,651 $104,625 $117,651 $190,550

33% 35%

$171,851 $373,650 $209,251 $373,650 $104,626 $186,825 $190,551 - $373,650

$373,651+

$373,651+

$186,826+

$373,651+

Partial History of U.S. Federal Marginal Income Tax Rates Since 1971
Applicable Year Income brackets First bracket Top bracket Source

1971-1981

15 brackets

14%

70%

IRS

1982-1986
1987 1988-1990 1991-1992 1993-2000 2001 2002 2003-2009

12 brackets
5 brackets 3 brackets 3 brackets 5 brackets 5 brackets 6 brackets 6 brackets

12%
11% 15% 15% 15% 15% 10% 10%

50%
38.5% 28% 31% 39.6% 39.1% 38.6% 35%

IRS
IRS IRS IRS IRS IRS IRS Tax Foundation

Top U.S. Federal marginal income tax rate from 1913 to 2009.

Rank

State

Gross collections Population (2007) (2007) $313,998,874,000 $244,672,914,000 $225,390,904,000 $136,476,423,000 $135,458,089,000 36,553,215 19,297,729 23,904,380 18,251,243 12,852,548

Revenue per capita $8,590.18 $12,678.84 $9,428.85 $7,477.65 $10,539.40

1 2 3 4 5

California New York Texas Florida Illinois

6
7 8

New Jersey
Pennsylvania Ohio

$121,678,423,000
$112,368,286,000 $105,772,774,000

8,685,920
12,432,792 11,466,917

$14,008.70
$9,038.06 $9,224.17

The Institute of Indirect Taxation is a professional body in the United Kingdom. Its members specialize in the study and practice of indirect taxes. The body was formed in July 1991 and formally launched in October 1991. It gained permission to call itself an institute in December of the same year. It operates as a company limited by guarantee.

Rate

Dividend income

Savings income

Other income Band (above (inc any personal employment) allowance) 0 - 2440
applies only if total income falls in this band

Lower rate

N/A

10%

N/A

Basic rate Higher rate Additional rate

10% 32.5% N/A

20% 40% 50%

20% 40% 50%

0 - 37,400 over 37,400 over 150,000

Estate duty was replaced in 1975 by Capital Transfer Tax, which was rebranded Inheritance Tax (IHT) in 1986. Partly due to the simple and widely-used methods which are available to avoid it, Inheritance Tax accounts for about 0.8% of government income, raising around 2 billion in 2001 and 3.6 billion in 2006.

The third largest source of government revenues is value added tax (VAT), charged at

17.5% (due to increase to 20%

in January 2011) on supplies of goods and services.

Capital gains are subject to

tax at the 18% (for individuals) or at the applicable marginal rate of corporation tax (for companies).

The Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963),

Directors-General of Income-tax or Chief Commissioners of Income-tax, Directors of Income-tax or Commissioners of Income-tax or Commissioners of Income-tax (Appeals), Additional Directors of Income-tax or Additional Commissioners of Income-tax or Additional Commissioners of Income-tax (Appeals),

Joint Directors of Income-tax or Joint Commissioners of Income-tax. Deputy Directors of Income-tax or Deputy Commissioners of Income-tax or Deputy Commissioners of Income-tax (Appeals), Assistant Directors of Income-tax or Assistant Commissioners of Income-tax, Income-tax Officers,

Tax Recovery Officers,

Inspectors of Income-tax.

Short-term Capital gains tax Sale transactions of securities which attracts STT:Sale transaction of securities not attracting STT:Individuals (resident and nonresidents) Partnerships (resident and nonresident) Individuals (resident and nonresidents) Overseas financial organisations specified in section 115AB FIIs Other Foreign companies Local authority Co-operative society Progressive slab rates

Long-term capital gains tax

10%

NIL

20% with indexation; 10% without indexation (for units/ zero coupon bonds)

30% 30% 40% (corporate) 30% (non-corporate) 30% 40% 30%

Progressive slab rates

10% 10% 20% with indexation; 10% without indexation

Description

Difference + - = Existing Rate (%) Proposed Rate (%) (%)

Domestic Company

Regular Tax MAT

33.6 11.22 (of book profits) 14.025

33.9 11.33 (of book profits) 16.995

+0.33 +0.11

DDT

+2.97

Foreign Company Regular Tax

41.82

42.33

0.41

Domestic Corporate Income Taxes Rates

Tax Rate
Effective Tax Rate with surcharge

Domestic Corporations

30%

30%

Foreign Companies Tax Rates

Withholding Tax Tax Rate for US Rate for non-treaty companies under the foreign companies treaty Dividends Interest Income Royalties Technical Services Other Income

20%
20% 30% 30% 55%

15%
15% 20% 20% 55%

Category
Tax on long-term capital gains Tax on winnings form lotteries, cross word puzzles, races etc. Tax on any other income a) domestic company b) foreign company

Rates

20 %

40% 35% 48%

Excise duty rate on items currently attracting 4% to be raised to 8% with following major exceptions:

Specified food items including biscuits, sharbats, cakes and pastries Drugs and pharmaceutical products falling under Chapter 30 Medical equipment Certain varieties of paper, paperboard and articles. Power driven pumps for handling water Footwear of RSP exceeding Rs.250 but not exceeding Rs.750 per pair Pressure cookers Vacuum and gas filled bulbs of RSP not exceeding Rs.20 per bulb Compact Fluorescent Lamps Cars for physically handicapped etc.

Name of Income

Rate

Dividend
Interest received on loans made in foreign currency to an Indian concern or Government of India. Income received in respect of units purchased in foreign currency

20%
20%

20%
For Agreements entered into:

Royalty fees or technical fees

After 31.05.97 but before 01.06.05 - @ 20%

After 01.06.05 - @ 10%

10%

Interest on FCCB

#Domestic companies are permitted to

deduct dividends received from other domestic companies in certain cases. #Inter Company transactions are honored if negotiated at arm's length. #Special provisions apply to venture funds and venture capital companies. #Long-term capital gains have lower tax incidence. #There is no concept of thin capitalization etc.