| Pages in topic: < [1 2 3] > | Poll: Income tax: how much do you have to pay in your country of residence? Thread poster: ProZ.com Staff
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| At least you're doing well. | Sep 14, 2016 |
Michael Harris wrote:
One of my polls has actually been posted☺
I was wondering how much income tax you have to pay in New Zealand, anyone know?
Here I am by 39% and except for earning less, cannot do anything about it and I have a good accountant
You're earning well over EUR 100,000 per year after deductions? That's impressive.
Earning EUR 40,000 after business expenses and private tax deductions (various expenses that lower the amount of income tax due) would mean paying a little over 17.5% income tax overall. I never thought of Germany as a high-tax country.
| | | | Maria Dimitrova 
Bulgaria
Local time: 04:20
Member (2011)
Bulgarian to English
+ ...
| Lucky to have low income tax | Sep 14, 2016 |
Income tax in Bulgaria is only 10%. I operate as a limited liability company and if I want to withdraw the profit after taxes, instead of retaining it, I pay another 5% tax on the dividend, so the total tax is 14.5% (because the 5% is on the profit left after deducting the income tax).
Social security, health insurance and pension contributions are about 30% of the gross salary, but in my case, I don't have to pay those on my entire income, as I get a large part of it as a dividend,... See more Income tax in Bulgaria is only 10%. I operate as a limited liability company and if I want to withdraw the profit after taxes, instead of retaining it, I pay another 5% tax on the dividend, so the total tax is 14.5% (because the 5% is on the profit left after deducting the income tax).
Social security, health insurance and pension contributions are about 30% of the gross salary, but in my case, I don't have to pay those on my entire income, as I get a large part of it as a dividend, rather than a salary.
I am usually happy when I pay more taxes, this means I have had more income ▲ Collapse
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SteveMcD wrote: Perhaps you need a better accountant 
Good point. My accounts end up something like this:
Sales 100
Rent -6
Utilities -2
Phone -1
Accountant -2
Software -1
Depreciation -1
Travel -5
Other -2
Profit 80
Tell me, how do I "spend" the other 55% of my revenue?!
| | | | William Murphy
Italy
Local time: 03:20
Member (2009)
Italian to English
+ ...
Gianluca Marras wrote:
In Italy you income is divided in several parts and to each part a different % is applied.
Anyway, generally speaking when you are a freelancer, in this country, 50% of your income goes in taxes and if consider that you have to pay also for your retirement scheme...
The problem is what you get in return... NOTHING.
Amen brother.
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neilmac wrote:
Spain: 15% Income tax, 21% VAT, the last time I looked, which was yesterday (a client informed me that I had billed them with the wrong tax rate and I had to rectify the invoice).
Actually I preferred it when both income tax and VAT were at 21%, because the gross amount on my bill was the same as the net amount, which made calculations easier. Moreover, since they cut the income tax rate to 15%, this is the first year I've had to pay tax at the end of the year rather than getting a rebate, which used to be the case. However, the workings of Hacienda are a mystery to me and I'm too busy with other things to try to find out why this happened.
You prefer to pay 6% more taxes because the calculations are easier?!!!
| | | | Nilton Junior
Brazil
Local time: 02:20
Member (2009)
English to Portuguese
+ ...
| In Brazil... | Sep 14, 2016 |
I pay about 27,5%. We also have a tiered taxation system, but I end up paying the highest rate on most of my income anyway.
I could pay less if I operated as a company (see below), but taxation laws are overly complicated for those who do business abroad and prefer to keep foreign currency.
Chris S wrote: SteveMcD wrote: Perhaps you need a better accountant Good point. My accounts end up something like this: Sales 100 Rent -6 Utilities -2 Phone -1 Accountant -2 Software -1 Depreciation -1 Travel -5 Other -2 Profit 80 Tell me, how do I "spend" the other 55% of my revenue?!
If you operate as a company in Brazil, you can choose whether you are taxed at ~17% on your actual profit or on a fixed rate (32%) of your income. Basically this means that if your profit is above 32%, the second option is better for you. I assume Czech Republic has a similar system.
| | | | | | | Post removed: This post was hidden by a moderator or staff member for the following reason: Requested by user. |
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You're a freelance translator (=negligible expenses) and yet only a quarter of your revenue comes out as profit? How do you manage that?!
Many things you can deduct in Czech Republic would be taxed in the UK as benefits in kind. I travel to other countries a lot, which can be deducted because it counts as maintaining my language skills (I work in 8 languages). I also live in my office, which is owned by the company, so both the mortgage and the depreciation can be deducted. Computers, printers, mobile phones (handsets as well as phone service), etc. are also tools of the trade.
| | | | Michael Harris
Germany
Local time: 03:20
Member (2006)
German to English
| Hi Elizabeth | Sep 14, 2016 |
I have freuquently experienced that finding out information from people that actaully live in the country is better than surfing through the net.
I will take a look at the link when I have a bit of time.
| | | | Sheila Wilson
Spain
Local time: 02:20
Member (2007)
English
+ ...
| 10% of us are exempt from taxes? | Sep 14, 2016 |
That's what 70 or so have given as their response at the moment. I don't know what you had in mind, Michael. I imagine most of these are people whose tax bill is zero, as mine often used to be in France. There, my business was taxed at some percentage or other but with a teenager living at home and tax credits due for home improvements etc etc, the family often ended the year owing the taxman zero. But I wouldn't say we were exempt from tax.
| | | | Kitty Brussaard
Netherlands
Local time: 03:20
Member (2009)
English to Dutch
+ ...
In the Netherlands, we also have a progressive income tax system (i.e. with tiered rates). For 2016 this looks as follows:
For the part of income up to €19,922: 36.55%
For the part of income between €19,823 and €33,715: 40.40%
For the part of income between €33,716 and €66,421: 40.40%
On all income over €66,421: 52%
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RobinB
United States
Local time: 20:20
German to English
| 39% in Germany? | Sep 14, 2016 |
Michael Harris wrote:
One of my polls has actually been posted☺
I was wondering how much income tax you have to pay in New Zealand, anyone know?
Here I am by 39% and except for earning less, cannot do anything about it and I have a good accountant
Surely not if you're referring to Germany. Yes, your top marginal rate may be 39% (or more - that's not uncommon, as I know myself), but unless you're earning half a million or more a year, your **composite** income tax rate after all personal allowances is probably going to be no more than around 30-33%.
| | | | Mario Freitas
Brazil
Local time: 22:20
Member (2014)
English to Portuguese
+ ...
| 27.5%, but... | Sep 14, 2016 |
But we are allowed to make sevaral "discounts" on the calculation basis, such as dependents, expenses applicable to office needs, social security (official and private), medical expenses, and other things. Plus, it's a progressive calculation, so we pay 0% up to a certain amount, then 15% in the next bracket, then 27.5% on the last bracket. So, it ends up being actually somewhere between 20% and 24% of the gross income.
| | | | Michael Harris
Germany
Local time: 03:20
Member (2006)
German to English
Sheila Wilson wrote:
That's what 70 or so have given as their response at the moment. I don't know what you had in mind, Michael. I imagine most of these are people whose tax bill is zero, as mine often used to be in France. There, my business was taxed at some percentage or other but with a teenager living at home and tax credits due for home improvements etc etc, the family often ended the year owing the taxman zero. But I wouldn't say we were exempt from tax.
Here in Germany, you do not have to pay "income tax" if you "earn" below a certain amount - which is quite a low amount, but this may be different in other coutries.
The purpose here was that I was curious how we as freelancers deal with the "income taxes" in the different coutries as I now that in Hungary, they have very high taxes and they keep on changing the rules every 1 or 2 years.
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