personal property tax explained in details

Personal property tax

Tax is a mandatory financial payment, by an individual, or other legal entity, to governmental organization. A person – taxpayer is punished by law if the payment is not completed as expected. Taxes are divided into direct and indirect taxes and they can be paid by money or as its labor equivalent. 

Each country has different taxes and regulations. Therefore, it can be super confusing for us to understand, or fill out the forms when it comes to taxes. 

Let’s take a look at 3 charts below, in which we compared United States with other countries all around the world. We have compared Tax Revenue, Total tax rate and Tax on personal income. 

Personal property tax

Personal property taxes are also known as a form of taxation on what is described as personal property. It is also characterized as any movable equity that isn’t attached to home or building.

Personal property requirements differ in every country and they are most likely going to affect businesses. All movable assets are described as personal property and they are taxed annually, when it comes to businesses.

Real estate, land and buildings, which are known as a real property, are excluded from personal property.

Tax Revenue

Tax revenue is described as revenues collected by government, through taxation The percentage of GDP illustrates the share of country’s output that is gathered by government, through taxes obviously.

Taxation is a primary source of income for a state and the revenue might be obtained by taxes on income and profits, social security contributions, taxes on goods and services, ownership taxes, payroll taxers, transfer of property and other taxes.

Tax revenue shown in comparison with other countries in 2017
Source: OECD, Chart: HouseofBanks

Total tax rate

Total tax rate (% of commercial profits) measures the amount of taxes payable by businesses after accounting for acceptable deductions and exceptions as a share of commercial profits. Personal income tax has not been included in a chart.

Total tax rate in comparison between the US and the rest of the world
Source: WorldBank, Chart: HouseofBanks

Tax on personal income

Tax on personal income is described as taxes collected on the net income and capital growth of individuals. The graph relates to government as a whole and is measured in percentage of total taxation. 

Tax on personal income shown in comparison with other countries in 2017
Source: OECD, Chart: HouseofBanks

Tax calculator

There is lots of Online Tax Providers, in case you need a help with anything regarding taxes. In addition, tax calculator websites are a great help when struggling with taxes. We will recommend you a few of them, even when you live outside of US.

You can use Bright!Tax, SmartAsset, H&R Block, or GoodCalculators

In conclusion,  it’s just up to you which direction your are going to go and how are you going to manage that. 

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