INCOME TAX
Income tax is the sum paid to the state by each of us from our profits. A person can make profit from very various activities. It s possible to earn money by working at factories and fabrics, giving lessons at school or institute, working at construction, and so on. In every case, the leading employer hiring a person pays him a salary every month. That’s why the income of a person working for another is called the salary (remuneration of labor). If you take percent from the money you put to the bank, it is considered as your income, too. But this kind of income is not a salary, but an income from your personal activity.
Except of putting money to the bank, you can earn money by preparing pupils for institutes at home, breeding and selling chicken, ship and other animals, trading at markets and other ways.
As you can see, differently from fabric and factories no one employs you this time. You earn money yourself. It is clear that no one can earn the same salary and same income for the activity he does. That’s why the state withholds a small amount of income from people with a middle profit. If the monthly income is up to 2000 manats, 14% is paid to the state. Let’s consider that you work at a factory and earn a salary of 500 manats every month; this time state withholds 70 manats of income tax, so 430 manats are left:
500 manats x 14% : 100%=70 manats
You should consider that, if the monthly income of a person at his main place of work is up to 200 manats, it’s part at the amount of 75 manats is subtracted and the rest part is attracted to the income tax at the rate of 14% (200-75=125x145=17.50 manats).
If your monthly income is more than 2000 manats, you pay to the state 280 manats and 30% of the sum more than 2000; for example: if you earn 3500 manats salary every month, you will have to pay 730 manats to the state and 2770 manats will be left to you.
Except of income tax, every person transfers 3% of his salary to the State Social Protection Fund every month. The employer transfers 22% of the general salary fund to the account of this fund. The salary fund consists of general sum, which is to be paid every month to all employees. These transfers are important, because, apparently from young people, pensioners can’t work and provide themselves. That’s why young people have to take carry of them. After a time, present young generation will turn into pensioners lost their ability to work. This time new generation will have to provide aged people. This sequence will last forever.
Along with this, 20% of taxable incomes of a physical person involved into entrepreneurial activity are paid to the state. For example, a physical person produces somegoods. To produce these goods he buys raw materials, uses fuel, electrical energy and etc. After the product is ready, he sells it at the market. This time, the entrepreneur after subtracting expenditures on production, gets the taxable income. The physical person pays the income tax exactly from this income. For example, he spent 200 manats on production of goods and received 300 manats income from their sale. This time, the tax paid by the entrepreneur will be in a such form: (300-200)x20%:100%=20 manats.
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