Sep 25

What is tax deductible ?

It ends with the calendar year and the fiscal year also . In the middle of the new year we should think about doing the tax return the previous year , ie in 2015 have to do the tax return for 2014 . And here are of great importance as terms deduct .

And is it still time to undertake actions to deduct an amount of money in the next tax return . Possibly , it is a term familiar to you the amount of times you’ve heard, but that does not have to be much less known . We explain what it is and why the state allows exoneration .

We, in our capacity as citizens of a country , we have to contribute our bit to the public coffers in taxes . Usually states are responsible for building all the infrastructure , ensure a number of public services such as health, education or public safety and prevent the formation of large social inequalities , and a portion of this funding is through taxes.

When we say that a tax is levied , it means that the citizen has to pay a certain amount of money to receive certain revenues in proportion , for example , VAT is levied on the consumption of goods and services, income tax levied on the income of labor , corporate tax levied on the profits of a company, etc. . Well, tax relief is nothing that the reduction in the payment of a tax if they meet certain conditions established by law , by returning part of what contributed to the tax on the income statement .

For example, a person working for someone else , pay the corresponding income tax as it is receiving an income from your business , but you can deduct if you have purchased a residence, and continues to pay the mortgage , or, if you have hired a pension plan . In previous posts in this blog we talked about the ways that we employed workers to deduct for income tax.

But we can not deduct any tax . Any citizen , as a consumer , you can not tax deductible VAT to be paid , because this is not income for the consumer , but to the company that offers that particular product , and although the VAT ultimately impacting on the consumer, is the company concerned which is paid into the public coffers , so it is companies can deduct the VAT they have paid their bills to the State. The same goes for excise duties on alcohol , snuff or hydrocarbons such as gasoline.

The reason that the State gives taxpayers the option of deducting is diverse . On the one hand , allows people performing remarkable economic efforts the possibility of a restoration of a portion of that money contributed to the state ‘s income tax , such as the payment of a mortgage. On the other hand , encourages the hiring of some financial products whose characteristics are not as attractive as other entities offering , in this case, the taxpayer deducts state that contracted pension plans, and not those who are operating traded, for instance .

But as we say, not only individuals can deduct . In fact , it is companies that have more options to deduct , for example , taxes such as VAT. In fact , many of the latest bipartisan electoral proposals were aimed at reducing certain taxes on businesses and the self by relief . This would help the firms have more money to invest, which somehow reactivate the economy of our country. The self-employed can deduct many expenses of purchases made as long as necessary for the work being performed .

Therefore, we can see the relief , also called deduction as income or as part of a savings. Many times we tend to ignore this type of aid in the income statement . Become well informed tax relief which concepts have their prize.