In this article we will discuss about the basis of tax computation:- 1. Introduction to the Basis of Tax Computation 2. Tax Rate 3. Tax Base 4. Accounting Policies 5. Tax Allowances and Disallowances 6. Tax Incentives 7. Assessment and Withholding Taxes. Introduction to the Basis of Tax Computation: The taxable income or tax base and the tax rate determine [...]
In this article we will discuss about the tax residence for individuals, companies and others. Residence of Individuals: General: The tax residence of individuals is normally decided on factors that can be determined by external observation. Generally, it is based either on: (a) The "physical presence" in the country or (b) The "facts and circumstances" that prove residence in a [...]
In this article we will discuss about the principles of domestic tax systems. General Principles of Domestic Tax Systems: As early as 1776, Adam Smith prescribed the four principles of taxation in his book on the "Wealth of Nations" as follows: (a) Equity: The tax payable should accord with the ability to pay, or the taxable capacity. (b) Certainty: The [...]