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Author Topic: Income tax withheld (32%)  (Read 881 times)

Miltra

  • Former member
Income tax withheld (32%)
« on: May 07, 2010, 02:55:20 PM »
Can anybody tell me how this tax is calculated and why it is even raised when I have red figures? Tanks

Offline ukatlantic

  • Members
  • Posts: 1780
Re: Income tax withheld (32%)
« Reply #1 on: May 07, 2010, 03:22:44 PM »
All countries you have to pay tax on the income you are making so depending on where you set up depends on the amount of tax the country charges you.  Even when you are making losses tax will still be taken as your accounts department are doing this to save you having a big tax bill to pay at the end of the financial year.  At the end of the tax year however if you have been found to not make enough income then you may get some or all of the tax back if you have made a bigger profit than expected too then you may have more tax taken from you to cover the shortfall, just as it happens in RL  ;).  

Offline type45

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  • Posts: 843
Re: Income tax withheld (32%)
« Reply #2 on: May 07, 2010, 05:52:29 PM »
but I want to say not every place collect tax every month ;)

ICEcoldair881

  • Former member
Re: Income tax withheld (32%)
« Reply #3 on: May 07, 2010, 07:56:56 PM »
but I want to say not every place collect tax every month ;)

or at all. (UAE, you know who you are :P)

Offline Sigma

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  • Posts: 1920
Re: Income tax withheld (32%)
« Reply #4 on: May 07, 2010, 09:00:39 PM »
but I want to say not every place collect tax every month ;)

Few actually "collect" taxes on a monthly basis, however by accounting standards it's always accounted for on at least a monthly basis and the money set aside for future tax liability purposes.  And that's exactly what happens here.  Every month it looks back, saw what your net profit was for the month, and you pay a percentage of that.  That money is then set aside, and in the 2nd week of January your accountants come and tell you whether you've paid too much and they're gonna give you some back or you didn't pay enough into holding and you need to pony up some more to pay off the government for the year.

bierbrauerm

  • Former member
Re: Income tax withheld (32%)
« Reply #5 on: May 07, 2010, 09:08:54 PM »
FYI:

In real life Germany you have to calculate and pay every month the income tax. There are a "few" excemptions on that but I don't want to bore anyone with Germany and its tax laws (which are more complicate than send a man to Mars  ;))

greetings

Miltra

  • Former member
Re: Income tax withheld (32%)
« Reply #6 on: May 08, 2010, 07:54:33 PM »
Thanks for all the explanations. As it is my first year in AS, Im now wondering what the tax bill will be at the end of the year.

Am I right that there is no overview which country collects how much in %?

Thanks again.

Offline Sami

  • Administrator
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  • Posts: 14540
    • AirwaySim - Are you the next Richard Branson?
Re: Income tax withheld (32%)
« Reply #7 on: May 08, 2010, 07:58:17 PM »
The % is visible in each country's info page (click on country name).

Offline Unbornio

  • Members
  • Posts: 662
Re: Income tax withheld (32%)
« Reply #8 on: May 10, 2010, 01:13:02 PM »
The best thing to do is base in Dubai. 0% tax  :o!!!!

Or simply use some flaws of the game... Spend all you can on planes until you get a negative income balance before the end of the year = you get your tax money back  8)
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