Income Tax Simply Explained
So many of us pay our taxes on time and do not give it a second thought. Is it because people don’t care or they simply do not understand how taxes work. The latter is truer as it has been found that many people don’t understand how taxes work. Here’s a simplistic explanation
We all our citizens of the country, and it is our duty to pay a certain amount as taxes. These taxes go towards developing the country, paying government employees, providing education, health care, and helping out the less fortunate citizens of the country.
How it works is that we all have jobs and for those jobs, we are paid salaries. Tax is a certain amount of money that we have to pay from that salary. People who do business get profits as a form of income, and they have to pay taxes on those profits. A certain basic amount of income is exempted from being taxed, but anything above that is taxed.
The tax amount is not the same for everyone. There are different slabs for different income groups. This amount that is collected as tax is then used to run the country. Tax is also collected on goods and services. Therefore, even the people who do not have an income that falls in the tax bracket are also paying taxes.
Paying taxes is a good thing as you are paying for the betterment of the country and your fellow citizens. And it benefits you in the long run.
To know more about taxes, you can talk to a tax accountant in Gold Coast. They can also help you with paying taxes.