From ConPlanet
Income tax in Vösia is the most important revenue stream within the Vösian Taxation System.
Income received by individuals is taxed at proportional rates, while income derived by companies is taxed at a flat rate of 20%. Income tax is collected by the Vösian Taxation Office(Vösien Maksuomet) for the government of Vösia.
In Vösia the financial year runs from July 1 to June 30 of the following year.
Income tax is applied to the taxable income of a taxable entity. Taxable income is calculated, in a broad sense, by applying allowable deductions against the income of a taxable entity.
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History
In 1883, Halstat-Zyri was the first state to introduce an income tax. It took the form of a withholding tax on distributed income of companies. The tax was seen as necessary due to a fiscal crisis. For much the same reason, Parisi followed suit in 1884. By 1909, all states had introduced an income tax.
Personal Income Tax
Income tax on personal income is a proportional tax. The current tax-free threshold is 50,000 kruna, and the highest marginal rate for individuals is 12%. In addition, most Australians are liable to pay the Medicare levy, of which the standard is 1.5% of taxable income.
As with many other countries, income tax is withheld from wages and salaries in Australia, often resulting in refunds payable to taxpayers. A nine-digit Tax File Number (Maks)must be quoted to employers for employees to have withholdings calculated using the various tax brackets. In the absence of this number, employers are required to withhold tax at the rate of 13.5% (the highest marginal rate plus Medicare levy) from the first dollar. Likewise, banks must also withhold the highest marginal rate of income tax on interest earned on bank accounts if the individual does not provide their TFN to the bank. Corporate and business taxpayers are required to provide their TFN or Vösian Business Number (VBN) to the bank, otherwise the bank will be required to withhold income tax at the highest rate of tax. It is not an offence to fail to provide a bank or financial institution with a TFN or ABN.
Individual income tax rates (Residents)
| Taxable income | Tax on this income | Effective Tax Rate |
|---|---|---|
| 0 – 50,000 | Nil | 0% |
| 50,001 – 175,000 | 4.5c for each $1 over 50,000 | 4.5% |
| 175,000 – 300,000 | 7.5c for each $1 over 50,000 | 7.5% |
| 300,000+ | 13.5c for each $1 over 200,000 | 13.5% |
Collection
Income tax is collected by means of a withholding tax system known as Pay-as-you-go (PAYG). For employees with only a single job, the level of taxation at the end of the year is close to the amount due, before deductions are applied. Discrepancies and deduction amounts are declared in the annual income tax return and will be part of the refund which follows after annual assessment, or alternatively reduce the taxation debt that may be payable after assessment.
Company Tax
The corporate tax rate is a flat 15%, though through the dividend imputation system Vösian residents effectively do not pay this company income tax upon the profits distributed as dividends by Vösian-resident corporations.
Family Tax Benefit
For families with dependent children the income tax system includes a supplementary set of rules known as Family Tax Benefits (FTB) that are applied in a more complex way by different departments. The benefits and thresholds vary depending on the number of children, and which of the married partners earns the additional income.
There are two parts, FTB-A and FTB-B.
For FTB-A each family receives a payment for each child. In 2011 this was
| Value | Age |
|---|---|
| 6,700 | under 13 |
| 8,400 | 13..15 |
| 2,900 | 16..17 |
| 3,500 | 18..24 (if still dependent) |
