Income Tax Computation In Different Countries


Income Tax Computation

There are different ways through which income taxes are computed depending which country you are in. Different countries use different ways to evaluate the amount of tax to levy to their citizens. It should be noted that the criteria used varies according to the technology that is available in that particular county for example; income tax computation in the United States of America is quite different from tax computation in India or in a third world country like Kenya.

Therefore taxation in one country is different from taxation in another country depending on the rules set by the government bodies concerned with taxation in different countries. In the developed countries, income taxation is seen to be more advanced due to rise in technology in such states. People are taxed depending on some factors for example; residents whereby we have senior and very senior citizens and also sex being part of the consideration during income taxation.

Income Taxation According to Sex

In most developed countries like India, income taxation is done depending on sex. Male and female cannot be equal in terms of societal social structure and thus the tax posed on them should be different. Tasks that men do some females cannot be able to do and still such tasks vary in terms of income. We find that men can have a higher tax rate than a woman in a country like India and yet they have the same income. This is not actually discrimination but the fact behind this is about the responsibilities the two have. Men may have fewer responsibilities because they may spend all their salaries in bars but a woman has to take care of children and be closer to family duties more than a man. Men are also negligence with their responsibilities and thus they end up being taxed high than women so that the latter remain with enough money to cater for home duties which could otherwise been a man’s responsibility.

Income Taxation for Senior Citizens of a Country

Income tax computation can also be in terms of a senior citizen in a particular country whereby, the person has an income and has been a citizen in that country for more than 60years but less than 80years. Tax rate for such an individual may be quite different from the person who has been a citizen in the same country for less than 50years. This means that if you are a senior citizen, your income tax rate may be lowered since you have served the country for quite a long time.

Low Income Taxation for Very Senior Citizens of a Country

The better off people are the very senior citizens of a country. These are those citizens of a particular country who have been citizens of their countries for more than 80years. These are true citizens since it shows that they belong to their countries even by birth. This shows that they have quite a long time serving their countries and thus their tax rates are likely to be reduced and thus they pay less income tax as compared to the senior citizens.