#tax deducted at source meaning

[senilthesynth]

RIP Cohost

Cohost is shutting down the end of the year. While I'm kinda sad because it was a good experiment to see if non-federated social media could be viable that doesn't rely on selling data or anything, I think Anti-Software Software Club just made too many assumptions that didn't or couldn't pan out. Including just... not understanding what they wanted in the end.

(Read more because this was originally a Bluesky post and got long)

Number 1 mostly being them being "blindsided" by Stripe clarifying their policy that, in the end, means ASSC couldn't use them as a way for users to tip each other or the Artists Alley section and such. That policy existed for years, well before Cohost ever existed. For context, ASSC originally wanted to build a Patreon competitor, not a social media site. They would have failed so hard if they stuck to a Patreon competitor on this alone.

And in my opinion, number 2 is their pay. They were paying themselves very well-off all things considered, and everyone was paid the exact same amount (~94k last I heard). That's… a lot of money going towards pay that could've gone to hosting costs. They're a startup. You pay yourselves what you can. I appreciate that they paid themselves well, but again. Startup. You pay what you can, and they were nowhere close to breaking even at any point.

I think their financial model didn't do themselves any favors - they started out with "we got a lot of loan money to do this and now we have to make it profitable" which, yeah, sometimes that's what it takes. But that's venture capitalism. Especially since Cohost's source code WAS the collateral! They acted as a leftist group trying to market themselves as a non-profit/not-for-profit (they're a LLC, they're legally not forced to do either), paying themselves well more than they realistically, and hoped they could get enough people to subscribe monthly to break even.

That… doesn't work.

Not to say this would've fixed things, but I think them registering as an LLC didn't help. That prevented them from bringing on anything resembling a volunteer, and since their whole thing was "everyone gets paid the same" it meant they had to operate with very few people. If I recall correctly, they had one moderator. Maybe two. Maybe. Two developers, an artist, and a moderator. Four people. MAYBE five, I forget the exact number.

This is entering hypothetical territory so everything is unknown and is me guessing a lot of things, but is based on what I do know.

Being a non-profit comes with its own set of problems, but if they could become and maintain a 501(c)3 non-profit, they could pay themselves what they could and have people willing to help volunteer moderate. They could never get code contributors, though, since their source code was their collateral it by nature had to be closed off. Also, donations (recurring or one-off) are tax-deductible for US-members, so while it's not a HUGE benefit it offers at least that small bonus.

I'm glad that they tried, and got as far as they did (even if it meant loan after loan to not die instantly). It showed that it could be possible - that there's hope in this idea. It's just a question of HOW to make it a sustainable reality. I don't think there's a clear answer there, though. Like my non-profit idea hinges heavily on maintaining 501(c)3 status (or similar) and being able to bring on volunteers as-needed. Using a public spec for the back-end (like ActivityPub or ATProto) so the focus can be on implementing it (even if federation is never a thing) instead of doing it raw - which avoids the back-end development time but then means having to work with an existing spec that may or may not change substantially over time.

IDK. I have no idea what would make a medium-form social media such as Cohost viable. Maybe it's the same idea but with lower pay so it's easier to bring new people on as-needed, with the expectation that this is a passion project 'til it gets off the ground. Maybe it takes the "use a public spec for back-end" approach and focuses on the implementation of it with their own additions and flair. ActivityPub is one spec, but you have Mastodon, Pixelfed, Misskey, Wafrn, etc. that all go in different directions. ATProto will likely be the same one day - Bluesky being the obvious "reference" implementation right now.

Maybe it's something else entirely that I could never ever think of. I don't know, but all I do know is that I'm glad they tried. Unfortunately, the writing has been on the wall for months now and honestly? If you didn't expect that, that's on you. People have been saying that Cohost wasn't sustainable for months.

[justinspoliticalcorner]

Julie Tsirkin and Monica Alba at NBC News:

WASHINGTON — The Biden administration will take a historic step toward easing federal restrictions on cannabis, with plans to announce an interim rule soon reclassifying the drug for the first time since the Controlled Substances Act was enacted more than 50 years ago, four sources with knowledge of the decision tell NBC News. The Drug Enforcement Administration is expected to approve an opinion by the Department of Health and Human Services that marijuana should be reclassified from the most strict Schedule I to the less stringent Schedule III, marking the first time that the U.S. government would acknowledge its potential medical benefits and begin studying them in earnest. Attorney General Merrick Garland will submit the rescheduling proposal to the White House Office of Management and Budget as early as Tuesday afternoon, a source familiar with the timeline told NBC News. The Justice Department "continues to work on this rule," a Biden administration official said. "We have no further comment at this time."

What rescheduling means

Since 1971, marijuana has been in the same category as heroin, methamphetamines and LSD. Each substance under the Schedule I classification is defined as a drug with no accepted medical use and a high potential for abuse. Schedule III substances include Tylenol with codeine, steroids and testosterone. By rescheduling cannabis, the drug would now be studied and researched to identify concrete medical benefits, opening the door for pharmaceutical companies to get involved with the sale and distribution of medical marijuana in states where it is legal.  For the $34 billion cannabis industry, the move would also eliminate significant tax burdens for businesses in states where the drug is legal, notably getting rid of the Internal Revenue Services code Section 280E which currently prohibits legal cannabis companies from deducting what would otherwise be ordinary business expenses. The Department of Justice’s rescheduling decision could also help shrink the black market which has thrived despite legalization in states like New York and California and has undercut legal markets that are fiercely regulated and highly taxed.

The Biden Administration announces its plans to reclassify marijuana from the stringent Schedule I to the much more lenient Schedule III, following recommendations from the HHS and the DEA.

[financeprincess]

advice for people just wanting to be educated in the finance field?

I would start dipping your toe in the finance sections of reputable sources (i.e. Financial Times, Wall Street Journal, Harvard business review, MarketWatch, etc.) and start researching terms and companies you don’t know. I treat myself with a Bloomberg Businessweek subscription sent to my home because I love their design team and it’s actually very informative. You can also sign up for the Morning Brew finance newsletter, it’s free and I read it every morning to get a brief overview of what’s going on. Even just being informed of current events is helpful in learning about finance because all major events effect the market and businesses. Look at stock performance charts. Learn about different types of investment accounts and different kinds of investments. There are a lot of really great courses on platforms like Coursera as well, I just took one called Private Equity & Venture Capital from Università Bocconi. Flirt with equity crowdfunding platforms (I accidentally made a lot of money on one of these as an early investor with less than $1k). If you live in the US start looking into personal and business tax deductions. Even credit card rewards can actually get you a lot, I’ve gotten free hotel rooms and free flights from money I would have spent anyway. Investments also mean more than just individual stocks: could be index funds, mutual funds, bonds, CDs, REITs, forex, precious gems & metals, real estate, even some designer goods retain and increase in value if bought strategically and handled correctly. Even just having the fundamentals of a maxed out retirement account (a Roth IRA or a backdoor Roth IRA is my personal preference) full of index funds and mutual funds that are balanced well, a fully funded emergency fund of 3-12 months personal expenses, any debt above 7% interest paid off, and sinking funds for various expenses automatically set up in a high yield savings account will have you very well off. When you have a foundation like that you have the breathing room to change careers, take time off, buy investment properties, invest in volatile but potentially profitable ventures, start businesses, and set up additional streams of income.

[theabstruseone]

As the studios continue to shoot themselves in the foot, I thought some people might like an explanation for what all this "writing off for taxes" means when a studio, network, or streaming service pulls a show to write it off.

Disclaimer: I have worked in accounting but am not and never have been an accountant. This is a simplified explanation that doesn't go into all the details so people have a basic understanding of what's going on.

Long post continues below...

Businesses (including self-employed people) are taxed based on the profits the business makes. To determine what the profits are, companies tally up all the money they made from various sources then deduct all the expenses they paid for the business.

For a very basic example with completely made-up numbers, I'm screening a movie to 100 people who pay $10 each to see it. So I have $1000. It cost me $200 to rent the theater, I spent $20 printing the tickets people bought, and I bought $80 worth of flyers to advertise the screening. So I add up all my expenses ($200 + $20 + $80 = $300), then I subtract that from how much money I made ($1000 - $300) to get how much profit I get taxed on, or $700.

Now let's say instead of paying to have the tickets and flyers printed, I buy a printer to do it myself. The printer costs $200, but I'm going to be using it for several years. This is where Amortization comes in.

Amortization is a type of deduction businesses take on assets they purchase where the deduction for that asset is spread over time. The value of the asset is going to decrease over time due to normal wear and tear, but it's going to be in use for many years so I can choose to deduct it over time as well. So for my $200 printer, I deduct $50 the first year, $30 the second, $20 the third, and so on until the full value of the asset has been deducted over the course of several years. Again, it's way more complicated than this but you get the general idea.

Now, in 1993 it was made legal for films and television networks to write off the expenses in creating a movie or show via amortization. The idea is that, instead of losing value due to wear and tear, the intellectual property loses value because it becomes less popular over time. A movie released in 2000 is never going to make as much money in 2001, and less in 2002, and less than that in 2003, and so on because DVD/bluray sales will fall over time and it won't be licensed as frequently by networks or streaming services and those licensing fees will go down. So now all the expenses for a film or show can be amortized over 15 years.

The thing is, if you amortize something and it loses all value, you can claim all remaining amortized value at once. For example, if you have a company vehicle that breaks down completely and can't be repaired, it's not worth 25% less than it was the prior year, it's now worthless. So the company can declare the asset no longer has value and claim whatever expenses were paid as a deduction at once.

So what the studios are doing are saying "This TV show no longer has any value, so we're pulling it from distribution and writing off all the money we spent on production this year."

The problem is, that IP is considered to have no value from that time forward as far as taxes are concerned. If the company makes money off of that IP again, they have to repay all the money they saved on their taxes.

So if I make a movie that costs $60 million in 2022, I can decide not to release the movie and write off all $60 million as a deduction on my taxes for 2022. But I can NEVER release that movie. Because if I do, I then have to pay back the taxes I would have paid in 2022 if I didn't take that $60 million deduction.

So what's going on is all these studios, networks, and streaming services are permanently shelving all of these shows and movies to reduce their tax burden THIS YEAR ONLY, and then they can NEVER release them again or they have to pay those taxes. It also means they don't have to pay any residuals to actors, writers, directors, and other people who made the film (which is funny because residuals paid out are business expenses and can also be written off).

It is the epitome of goosing the numbers for a single quarter at the expense of the entire business. They're saving money on taxes for a single year while destroying the very thing they use to make profits in the first place.

[ingek73]

I thought I knew royal greed – but King Charles profiting from the assets of the dead is a disgusting new low

For decades, parliament has been far too lenient about the royal family’s finances. This avaricious practice needs to end

Norman Baker Fri 24 Nov 2023 13.08 CET

Over the centuries, the royals have continually bleated poverty and demanded more money from the taxpayer.’ Photograph: Reuters

As a royal author, I have come across plentiful examples of royal greed. It is standard practice for the royals to seek to minimise their personal expenditure while maximising their income from other sources, normally the public purse.

But the revelation that King Charles III’s personal slush fund, the Duchy of Lancaster, is having its already bulging coffers augmented by the estates of people who die in parts of England with historical links to the royal estate plumbs new depths of disgusting avarice.

Like many so-called traditions, the feudal hangover that is bona vacantia should have been consigned to the dustbin of history centuries ago, but it has been all too tempting for successive royals to preserve this royal fruit machine that pays out again and again. Over the past 10 years, it has collected more than £60m in the funds.

Under this system, the Duchy of Cornwall, owned by Prince William, can claim the assets of people who die in Cornwall intestate – without a will – if no relatives can be found. Charles’s Duchy of Lancaster does the same when their last known residence is within what was historically known as Lancashire county palatine.

Edward VIII found cash from those who died intestate in the boundaries of the duchy was sitting in an account in case claims arose against it. He simply stole a million pounds from it, leaving almost nothing in that kitty.

George VI did very well out of the loyal servicemen who died serving their country in the second world war, who originated from within the confines of the duchy and had no will. “For king and country” took on a whole new meaning.

As disquiet about the practice of bona vacantia grew after the war, the royals announced that moneys collected would henceforth be given to charity – after processing costs had been deducted, of course. In the case of the Duchy of Lancaster, this came to about 4% compared to 15% for the Duchy of Cornwall.

Yet a Guardian investigation now reveals that matters are even worse than we have been led to believe. Put bluntly, we have been lied to. Monies we all thought were going to charity have instead been used to improve properties owned by the duchy, increasing the income stream that flows from them into Charles’s pockets.

We have the most expensive monarchy in Europe by far in terms of state support, and one that benefits from unique tax treatment available to nobody else. No inheritance tax is paid. The so-called private estates of the duchies of Cornwall and Lancaster are not private enough to pay corporation tax or capital gains tax. Even income tax is only paid voluntarily – if it all – no receipts have ever been made public.

The civil list, which in 2011 gave the royals £7.9m a year, was replaced, after palace lobbying, with the sovereign grant, which 12 years later is up to £86m a year. Over the centuries, the royals have continually bleated poverty and demanded more money from the taxpayer, while at the same time refusing point blank to reveal the extent of their accumulated wealth.

They even refused to provide this information to the last government that seriously tried to dig into this – the Labour government of the mid-1970s, with the then home secretary Roy Jenkins pursuing the matter.

Back in Queen Victoria’s reign, the government was told she was desperately short of cash to undertake her duties so a big uplift was provided. She was not short of cash, and the money provided by the then government was instead used to buy Sandringham and Balmoral. I recognise that behaviour from my time in parliament. It’s called fiddling your expenses.

My calculations suggest that the king is worth as much as £2bn and probably more. The bulk of this has come from excessive generosity on behalf of the taxpayer, either through direct handouts or indirectly through unique tax exemptions. But antiquated and indefensible arrangements such as bona vacantia have played their part too.

Parliament, which over the decades has been far too deferential, far too trusting, far too easy going, needs to get a grip. The disgusting existence of royal windfalls from dead people should be ended forthwith. The duchies of Cornwall and Lancaster should be transferred immediately to the publicly owned crown estate; they only escaped from being transferred along with other royal lands in 1760 because they were then deemed worthless. Plainly, this is no longer the case. The public accounts committee should begin a thorough investigation into the funding and wealth of the royals.

Monarchists should worry. Opening the doors on royal finances and practices will reveal a terrible stench.

in regards to:

[lastlycoris]

I was right. Dr. Quinzel and Strange wanted to talk about my opinion about the recent anti-rich violent protesting today. I think I gave them a safe answer.

Told them that the current violent protests only serves to harm the common folk. Burning down that Amazon warehouse? The manager of the place will probably get fired - the workers there will get laid off - and Amazon writes it off as a business loss, which they will later use as a tax deduction. Nothing changes. Perhaps Amazon just needed this event as an excuse not to deliver to Gotham anymore, because with the number of robberies here, they're probably losing a lot of money and resources.

Since all three of us are doctors, I spoke about source control. Sometimes, you get a pocket of infection called an abscess. The abscess has a thick capsule meaning antibiotics - your typical treatment for general bacterial infection - can't penetrate it well, but it's permeable enough to seed infection throughout the body - or at the very least make the person very sick. At that point, the treatment would be to lance the abscess and drain it; by doing so, you have controlled the source of infection. Hence source control.

In this case, you need to identify the ones responsible for the large socioeconomic disparities and make them change their tune by whatever means necessary, for they are the source. I don't mean just CEOs who are meant to be professional scapegoats for the company; their life cycle is that they put in a policy that would be hated by the public so that they get fired, which gets them generously compensated due to golden parachute clauses into their contract, which they then go on to the next company who know what their purpose is and start their life cycle again - sort of like a parasitic worm. When I talk about getting rid of the infection at the source, I talk about the heads of the company, major shareholders, etc. You make an example of three or four - and things will change. Perhaps not immediately for the better, but it'll send a message that the common people won't tolerate such things anymore. A surgical response.

And per usual, Dr. Strange just goes on to write on his little notebook of his while staring at me as though I were a specimen in the pathology lab. Dr. Quinzel just looked like her barely-hidden-excitement professional self.

[beardedmrbean]

Helsingin Sanomat carries an editorial on the ongoing government formation talks at the House of the Estates, and their likely impact on trade unions.

HS says that the four right-wing parties engaged in coalition talks have some big disagreements, primarily on immigration and climate change, but there is a consensus on labour market reforms.

Finland's generous income-linked unemployment benefits face a shakeup, according to HS, with payments set to be tapered. That means they will be higher at the start of a stretch of unemployment, but reduce over time as the two-year-eligibility period expires.

The National Coalition Party also wants to eliminate the tax deduction for trade union membership fees, effectively making membership of trade unions more expensive.

HS suggests that the intention is to push union members to join YTK, a fund that offers eligibility for unemployment benefits but does not negotiate pay rises for members or offer many of the other services that come with union membership.

That would weaken the trade unions' voice in society, says HS, likely prompting protests and a vote for the left in the next parliamentary elections — thereby increasing polarisation and features of a two-party system in Finland.

That said, HS warns that a new government is still some way off, and even if it is formed it might not last the distance due to dissent among the ranks of government parties.

Foreign students seeking work

Kauppalehti reports on a hot topic: foreign graduates looking for work. The paper focuses on those from India, interviewing two students hoping to stay in Finland after they finish their degrees.

India has a surplus of workers, says KL, meaning the government there is very happy for young people — even highly educated people — to seek higher incomes and a better life abroad.

The Indians interviewed for the story say they love Finland. India's pollution, corruption and "difficult atmosphere" weigh heavily on their minds, and they love the Finns' peaceful nature and the quality of life obtainable in Finland.

Back in India, one is a university teacher and the other manages a factory. But they are not so optimistic that they expect to find work in their fields in Finland.

One studying business administration says she'll do any work anywhere in the Nordic country, while the factory manager says he is considering driving a truck because he has the licence and it does not require Finnish language skills.

The stats are against them. Finland ranks fourth in the European Union for graduate employment, among graduates from outside the European Economic Area. But that still means only 13 percent of graduates from outside Europe get a job.

KL says that the job search is different in Finland.

"In India jobs are found through networks, but in Finland jobs are generally filled via application processes and according to [candidates'] merits," said KL.

That may come as a surprise to researchers who found recruiters discriminated extensively against those with foreign names.

Speeding fine

Ilta-Sanomat has a classic Finnish story: the quirky news report picked up internationally and then reported through the prism of the foreign news desk interpretations.

Anders Wiklöf, a shipping magnate from Åland, has received a humongous fine for speeding. He was clocked at 82 km/h in a 50 km/h zone, and was fined 121,000 euros.

That's because Finland has a system of income-linked fines for some offences, and Wiklöf's income is pretty high.

The penalty sounds pretty tough to foreign ears, however, and IS notes that the story was covered by The Guardian, the Daily Mail, ABC News and even AS, in Spanish.

The tabloid neglects to credit the original source, however. That appears to be the Aland outlet Nya Åland, which reported the fine two days ago.

Wiklöf had told the paper that he regretted the fine, and had just not slowed down enough when the speed limit changed. He did have a request for those handling his contribution to public coffers, though, suggesting that he has followed government formation talks closer than some.

"I have heard that they are planning to cut 1.5 billion euros from healthcare spending in Finland, so I hope my contribution can fill a gap there," Wiklöf told Nya Åland. "Ideally I'd like it to be earmarked for that purpose."

[estonian-is-horrible]

donate money without spending!

Little known pro tip for Estonian tax residents. If you pay taxes, i.e. if you have an income above the minimum tax-deductible whatever, you can get a part of it back if you donate.

The limit, sadly, is set to 1200€ per year (see source), and it also can be only up to 50% of your taxes (I cannot find this number right now, I might be wrong on this part). Meaning, if you pay 2400€ in taxes per year, you can still donate 100€ a month to a non-profit, then pay fewer taxes, basically meaning you donated money without losing any money.

Remember, this isn't about the one-time payment or the 0.02€ tax refund you get in spring. If you have a job, your employer is already pre-paying your taxes.

If your gross income is 1500€, your net income is about 1223€, and you pay about 222€ on income tax. You can donate 100€ to a non-profit.

More details on the Estonian Tax and Customs Board (or the "evil EMTA" as I call it). A list of non-profits that are eligible for the tax-deductible donation is there as well.

[simplysolvedagency]

Federal Corporate Tax in UAE – Published Official CT Legislation

In the wake of the public announcement regarding the benefits of Corporate Tax in UAE (CT) and the frequently asked questions (FAQs) on January 31, 2022, as well as the publication of the Public Consultation Document in April 2022, the Federal Decree-Law no. 47 of 2022 regarding the Taxation of Corporations and Businesses Corporate Tax Law has been released on December 9, 2022.

The UAE Corporate Tax Law is Federal Decree-Law No. 47 of 2022, issued on October 3, 2022, and becomes effective 15 days following its announcement in the Official Gazette. The Corporate Tax law applies to the profits of businesses for fiscal years that begin on or after June 1, 2023.

This article gives brief highlights of the new rules, which were it was announced by The Ministry of Finance (“MoF”) and the Federal Tax Authority (“FTA”). It is important to note that the new rules align with the Public Consultation Document.

More details are awaiting Cabinet and Tax Authority Decisions, and further guidelines are expected to be issued to finalize all Corporate Tax Legislation in areas such as the Free Zone and Director compensation guidelines. Following the publication of Corporate Tax Legislation, the MoF has confirmed that its introduction is scheduled for June 2023.

Scope of Corporate Tax in UAE

Corporate Tax in UAE applies to the adjusted net profit of the worldwide accounting of the company.

The Corporate Tax in UAE Regime has two rates of different types:

A tax-free rate applies to tax-deductible earnings up to a     certain amount that is to be set in a Cabinet Decision (the FAQs relate to the threshold of AED 375,000)

The tax standard for the statutory rate is 9 percent.

Confirming the minimal tax burden of just 9% aims to ensure that the UAE has a competitive tax rate worldwide.

The Corporate Tax Law is silent in Article 3 on aspects governing the global minimum of 15% tax rate. That applies to MNEs that fall within the definition of Pillar Two, which is part of BEPS Pillar 2. OECD BEPS project and applies to multinational corporations (MNCs) that have consolidated worldwide revenues exceeding EUR 750 million (c. the equivalent of AED 3.15 billion) at any time in two of the last four years. The FAQs address the possibility of adopting within the UAE of BEPS Pillar 2.

Individuals:

Individuals are affected by corporate taxation if they engage in business activities that are in line with an overall VAT concept for business activities. A Cabinet decision is anticipated regarding how to apply Corporate Tax in UAE to natural people. That means that Corporate Tax does not apply to a person’s salary and other earnings earned through employment. However, those earning income through part of a business venture would be covered by Corporate Tax in UAE.

Free Zones

A specific and defined regime (subject to a further Cabinet decision) is provided for all businesses in UAE-free zones. These zones:

Maintain sufficient substance and

Earn qualifying income.

What is a sufficient income will be defined by a Cabinet decision. According to the Public Consultation Document, this could refer to the requirement not to do Business with the mainland UAE. It is stated that Free Zone companies can choose to be taxed as a corporation at a rate of 9 percent.

A wide range of UAE rules for sourcing is in force and essential for businesses in the Free zone who want to satisfy the requirements of substance.

Withholding Tax

There will be no withholding tax on specific categories of UAE State Sourced income produced by a non-resident. In turn, foreign investors who don’t carry any businesses in the UAE, in general, will not be taxed within the UAE.

Foreign Entities

Foreign entities can be residents of the UAE if they are operated and controlled in the UAE. Foreign entities who aren’t considered to be residents in the UAE, however, may have a permanent establishment in the UAE. The Definitions of Permanent Establishment have been clarified as fixed PE and the term “agency PE. Further details on PEs will be subject to a Ministerial decision.

Exempt Entities

The UAE Corporate Tax Law retains the exemption for Investment Managers exempted from Public Consultation Documents. Rules apply to Partnerships, and Family Foundations can also use to increase tax transparency.

Government entities and government-controlled entities, as well as qualifying public benefit entities and investment funds, will be exempt from the UAE Corporate Tax Law. Extractive companies (upstream oil and gas companies) are exempt if they earn revenue from their extractive businesses.

Banking operations are affected by Corporate Tax in UAE (unless an institution falls located in a Free Zone and is eligible for the zero-interest rate).

Implementation Date

Article 69 of the UAE Corporate Tax Law provides that the Law will apply to Tax Periods that begin on or after June 1, 2023.

Businesses with a financial year that begins on January 1 are subject to CIT starting on January 1, 2024.

Financial records & Requirement to Maintain Audited Statements

Taxpayers must create and keep financial statements backed by all records and documents to support Corporate tax returns. The forms must be kept for a minimum of seven years.

This obligation will apply to every UAE entity (unless included in the Corporate Tax Group).

Every entity must create its financial statements. However, only some entities may be audited for financial information. A subsequent Cabinet Decision(s) will define the types of tax-paying individuals that must keep certified or audited accounting statements.

Small Business Tax Relief

Reliefs for small-scale businesses with revenues or gross income below the threshold of a specific amount are made. Qualifying businesses will be considered to have no tax-deductible income and must comply with a simplified set of requirements.

The threshold is determined by the revenue, not the earnings or taxable income. That is likely to be confirmed by an upcoming Cabinet Decision.

Deductible / Non-Deductible Expenses

The expenses incurred solely and exclusively for business reasons (and which are not to be capitalized) can be deducted.

Deductions are not allowed when expenses are incurred to earn tax-free income. In the case of any expenditure with a mixed purpose, removal is not permitted. Interest expense is deductible subject to a limit of 30% of EBITDA.

Financial assistance rules are in effect and prevent companies from getting funding to pay dividends or distribute profits.

Entertainment costs are set at 50 percent.

Donations not tax-deductible include those made to a non-Qualifying Public Benefit Entity and bribes, fines, and dividends.

Notably, the amounts withdrawn from the Business by any natural person who is a tax-deductible individual are not deductible.

Exempt Income & Relief

The following income categories will be exempted from Corporate Tax in UAE (Article 22 of the UAE Corporate Tax Law):

Capital Gains and Dividends, and other distributions of     profits from a Resident

Capital Gains such as dividends, capital gains, and other     distributions from Qualifying shareholding in a legal entity of a foreign     country that is subject to a hold duration of 12 months, the minimum     contribution of 5 percent, and at the minimum, subject to 9 percent CIT     for the source country. From which they originate.

The income from a foreign PE is subject to certain conditions     and the option to apply an exemption (rather than credit)

Earnings of an individual who is not a resident of the     country come from operating ships or aircraft involved in international     transport.

These transactions can be subjected to a specific reduction, i.e., effectively an exemption from taxation:

Restructurings and intragroup transactions that qualify as     qualifying Entities will be eligible when they hold 75 percent common     ownership.

Restructuring relief for businesses under specific conditions.

Transfer Pricing

Related party’s transactions should be carried out under the arm’s-length principle as outlined in Section 34 under the UAE Corporate Tax Law. In addition, it states that the five conventional OECD Transfer Pricing strategies are suitable to help support the arm’s length character of arrangements with related parties and allows the use of alternative methods when needed.

Article 34 provides that when a tax authority adjusts to a foreign country that affects the tax structure of a UAE entity, the application must be submitted to the FTA to request a similar adjustment that allows the UAE firm to be exempt against double taxation. Any adjustments that result from domestic transactions do not require an application.

The requirements for documentation on transfer pricing are covered in Article 55. UAE businesses will have to follow the rules for transfer pricing and the documentation requirements set by OECD Transfer Price Guidelines, which lead to three-tier reports, i.e., master file, local file, and country-by-country reporting. A reference to a controlled transaction disclosure form is provided (details of which are still to be determined).

It should be noted that no thresholds for the materiality of the product are provided. Separate legislation will be released later. Advance pricing plans will become made available via the normal clarification process currently in place.

UAE has introduced provisions requiring the payment and benefits given to persons connected to be tax-deductible in their market value. The same rules are followed in Article 34 of the UAE CIT Law.

Administration & Enforcement

The MoF is the sole authority for purposes of multilateral     bilateral or multilateral agreements as well as for the exchange of     information between countries.

The FTA is accountable for the corporate tax system’s     administration, collection, and application. Fines and penalties are governed     under a law known as the Tax Procedures Law.

Companies will require a VAT Registration UAE from     the FTA.

Companies that are required to comply with UAE Corporate Tax     are required to submit the Corporate Tax return online for every financial     year within nine months from the date of the end of that Financial Period.     (A financial period generally refers to any financial period that is 12     months long)

Free Zone companies that are subject to CIT at 0 percent CIT     must also submit a CT Return.

Foreign Tax Credits

Tax credits for foreign taxation are allowed for Corporate Tax in UAE due as per the Public Consultation Document. Businesses can claim less corporate tax owing and the sum of tax withholding effectively removed. There is no way to carry forward. There will be no credit for taxes paid to the individual Emirate.

Tax Grouping

Fiscal unity or Tax Group: UAE companies can form a “fiscal unity” or Tax Group to serve UAE purposes. The main requirement for a Tax Group is to comply with the (in)direct sharing requirement, which is 95 percent. Free zone entities subject to zero percent cannot join the Tax Group. Additionally, the parent (which may be intermediate) must be a UAE company.

Losses

By article 37 of the UAE Corporate Tax Law, losses can be carried forward for up 75 percent of taxable income. Losses can be transferred between members of the same group of corporations if those entities have 75 percent direct or indirectly owned. Losses cannot be transferred from exempt individuals or entities that are free zone. Loss offsets are also subject to the cap of 75 for businesses that roll forward losses.

Tax-deductible losses may be lost in the event of an ownership change (50 percent or more) if the new owner runs the same or similar Business. The criteria to be considered for this have been established.

Anti-Abuse

UAE will adopt an Anti-Abuse General Rule, also known as “GAAR.” The GAAR applies to cases where one of the primary reasons for a transaction is to gain an income tax benefit for the corporation that is incompatible with the purpose or intent of the UAE Corporate Tax Law.

The FTA will deal with and alter or counteract the transaction. The GAAR only applies to agreements or transactions entered after the UAE Corporate Tax Law is published in the UAE Official Gazette on October 10, 2022, in issue #737.

Summary

With the publication of the UAE Corporate Tax Law and confirmation of a 9% tax rate and a 9% rate, UAE has established a globally competitive rate for Corporate Tax in UAE and confirmed its intention to implement Corporate Tax in June 2023.

It is expected that additional information to be released over the coming months to be fleshed out and provide more excellent knowledge of its implementation. Nevertheless, several key elements are already confirmed, including introducing compulsory transfer pricing rules.

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The money Sean generates through Tiltify is Donated IN HIS NAME though.. I don't understand how hard it is for people to comprehend? While yes he can't claim the entire amount as a PERSONAL write off he does get to claim a percentage as a "Charitable Contribution Deduction" which means that he still gets a tax credit for a substantial amount of the money raised in his campaign!! If you don't understand how taxes work please try to educate yourself. I think the idiots responding to this are American and don't understand how international taxation works for Celebrities. It doesn't matter what country he raised the money in. It only matters where his home residence is located and their particular rules on Taxation. You all stating like fact that "He can only claim what he personally donated." Is an American misunderstanding of International taxation laws. They don't even teach you all how to do your taxes or personal finance in your schools! It's sad and pathetic how uppity and arrogant you all are.

THIS. Also everyone who keeps screaming "but sean can only claim his money that he donated through tiltify" I dare you to come up with a fucking source because NONE of you have and I've already linked several pages that give you a step by step walkthrough of how to do tax-claims through tiltify with other people's money. go ahead. I dare you, find me some actual sources that will make me change my fuckin mind.

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Why Is Accounting a Service Industry?

Accounting has evolved from a traditional bookkeeping role to a critical service industry that supports the financial health and stability of businesses worldwide. Whether you're running a large corporation or a small business, accounting services play a key role in ensuring compliance, financial clarity, and growth. But why is accounting considered a service industry? In this blog, we'll explore the key reasons and dive into important aspects of accounting services.

The Role of Accounting as a Service

Accounting is classified as a service industry because it provides essential financial management, analysis, and reporting services. These services are intangible, meaning they are not physical products but valuable expertise, advice, and support provided by professionals.

Some of the main aspects that make accounting a service industry include:

Personalized Solutions: Accounting services are tailored to meet the unique needs of each business or individual.

Professional Expertise: Businesses rely on the knowledge of accountants to interpret financial data, comply with tax regulations, and develop financial strategies.

Ongoing Support: Accountants provide continuous support through audits, tax preparation, and advisory services.

Compliance and Regulation: Businesses need accounting services to ensure they follow local, state, and federal financial regulations.

Key Accounting Services for Small Business

Small businesses rely on accounting services to maintain financial stability and growth. Here are some key accounting services small businesses often use:

Bookkeeping: Recording daily financial transactions.

Tax Preparation: Ensuring compliance with tax regulations and filing accurate returns.

Payroll Services: Managing employee salaries, benefits, and deductions.

Financial Reporting: Generating financial statements like balance sheets and income statements.

Budgeting and Forecasting: Helping businesses plan for future growth and expenses.

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Why Small Businesses Need Expert Accountancy and Tax Support

For small businesses, handling accountancy and tax duties can be challenging but crucial for fulfillment. Right here’s why expert accountancy and tax assist is vital for small groups and the way it may make a enormous difference:

Ensure compliance with rules navigating the complex panorama of tax legal guidelines and accounting guidelines can be daunting for small enterprise owners. Professional accountancy and tax specialists are nicely-versed in present day policies and compliance requirements. Their support guarantees that your enterprise adheres to felony standards, heading off high-priced fines and penalties.

Optimize economic management small agencies often lack the sources to lease complete-time finance workforce. Enticing with professional accountants lets in you to benefit from high-level monetary control without the overhead fees. These professionals offer treasured insights into financial planning, budgeting, and coins glide control, supporting you make knowledgeable selections and enhance profitability.

Maximize tax efficiency tax laws may be complicated and ever-changing. Expert tax advisors are adept at identifying possibilities for deductions, credit, and other tax-saving strategies. Their steering guarantees which you maximize your tax performance, lowering your tax burden and freeing up resources for other areas of your commercial enterprise.

Streamline accounting tactics powerful accounting practices are critical for preserving correct monetary statistics. Professional accountants can streamline your accounting procedures by means of imposing strong structures and software program tailor-made in your commercial enterprise needs. This leads to more accurate financial reporting, improved document-preserving, and less time spent on guide duties.

Offer strategic insights beyond fundamental bookkeeping, skilled accountants offer strategic insights that can drive commercial enterprise growth. They analyze monetary statements, check performance metrics, and provide recommendation on economic techniques. Their information allows you discover increase possibilities, manipulate risks, and plan for the destiny.

Facilitate monetary planning expert accountancy and tax help is important for long-time period monetary planning. Professionals assist you to create specified financial forecasts and plans, enabling you to set doable dreams and put together for potential demanding situations. This proactive approach facilitates make sure financial balance and supports sustainable increase.

Improve coins flow control effective coins go with the flow control is critical for the survival of small agencies. Accountancy professionals help in monitoring and managing cash go with the flow, making sure which you have sufficient liquidity to fulfill duties and put money into increase possibilities. They also help expand strategies to optimize receivables and manage payables.

Handle audits and reviews in case your business faces an audit, having an experienced accountant via your side is priceless. They are able to assist prepare for audits, make sure all important documentation is in order, and represent your interests at some stage in the evaluate method. Their knowledge reduces strain and improves the chance of a good final results.

In summary, expert accountancy and tax guide is crucial for small businesses to thrive. By way of leveraging their knowledge, you may ensure compliance, optimize economic control, and strategically role your business for fulfillment.

This publish consists of lsi keywords inclusive of "economic management," "tax performance," "accounting methods," and "coins float control" to beautify search engine optimization and spotlight the importance of expert accountancy and tax assist for small companies.

Note: for more detail click on Elan Tax

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Mastering Accounting for Lawyers: Best Practices for Legal Professionals

This guide covers essential strategies for accurate billing, efficient expense tracking, and robust financial reporting. It highlights best practices for handling client trust accounts, ensuring compliance with ethical standards, and utilizing accounting software tailored for law firms. By adopting these best practices, legal professionals can enhance their financial operations, streamline processes, and achieve better financial outcomes, ultimately allowing them to focus more on serving their clients and growing their practice.

Understanding the Fundamentals of Accounting for Lawyers

Effective financial management begins with a solid grasp of accounting principles. For lawyers, this means understanding how to track income and expenses, manage trust accounts, and ensure compliance with legal billing practices. Accounting for lawyers involves not only recording financial transactions but also comprehending how these practices affect the overall health of a law firm. By mastering the basics, legal professionals can avoid common pitfalls and set the foundation for more advanced financial strategies.

Implementing Efficient Billing Systems for Accounting for Lawyers

Billing is a critical aspect of accounting for lawyers. Adopting efficient billing systems can streamline the invoicing process, reduce errors, and improve cash flow. This involves choosing the right software that integrates with your practice management system, setting up clear billing practices, and ensuring that all billable hours are accurately recorded. Implementing a reliable billing system helps maintain transparency with clients and ensures that your firm is compensated for all services rendered.

Managing Trust Accounts: A Guide to Accounting for Lawyers

Trust accounts are a unique element of accounting for lawyers, requiring meticulous management to comply with legal and ethical standards. This involves tracking client funds separately from the firm's operating funds, ensuring accurate record-keeping, and performing regular reconciliations. Lawyers must be familiar with the regulations governing trust accounts in their jurisdiction to avoid issues of mismanagement and maintain client trust.

Navigating Tax Compliance and Accounting for Lawyers

Tax compliance is a significant aspect of accounting for lawyers, impacting both individual practitioners and law firms. Understanding tax obligations, deductions, and credits specific to the legal profession is crucial. This includes keeping accurate records of business expenses, understanding how to handle income from various sources, and preparing for tax season. Working with a tax professional familiar with the legal industry can help ensure that all tax requirements are met and that financial strategies align with tax regulations.

Financial Reporting and Analysis: Best Practices in Accounting for Lawyers

Regular financial reporting and analysis are essential for effective accounting for lawyers. This involves generating financial statements such as balance sheets and profit and loss statements, analyzing financial performance, and making data-driven decisions. Regularly reviewing these reports helps lawyers understand the financial health of their practice, identify trends, and plan for future growth. Implementing best practices in financial reporting ensures that all aspects of your firm's finances are transparent and well-managed.

Streamlining Expense Management with Accounting for Lawyers

Managing expenses is a key component of accounting for lawyers. Effective expense management involves tracking all business-related costs, categorizing expenses accurately, and implementing controls to prevent overspending. Utilizing expense management software can simplify this process, offering features like expense tracking, approval workflows, and real-time reporting. By keeping a close eye on expenses, lawyers can improve profitability and maintain financial stability.

Ensuring Compliance with Legal and Ethical Standards in Accounting for Lawyers

Compliance with legal and ethical standards is crucial in accounting for lawyers. This includes adhering to regulations set forth by bar associations and other governing bodies, maintaining accurate financial records, and avoiding conflicts of interest. Implementing internal controls and conducting regular audits can help ensure that all accounting practices meet professional standards. By prioritizing compliance, lawyers can safeguard their practice’s reputation and avoid potential legal issues related to financial management.

Conclusion

Mastering accounting for lawyers is crucial for the efficient management of a legal practice. By implementing best practices such as adopting robust accounting systems, ensuring precise billing and collections, adhering to ethical standards, and conducting thorough financial analyses, legal professionals can significantly enhance their firm's financial health. Embracing these practices not only streamlines financial operations but also fosters transparency and compliance, ultimately contributing to the firm's success. With a solid grasp of these best practices, lawyers can focus more on their clients and legal work, confident that their financial management is in capable hands.

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Maxworth Realty India Reviews: Top 10 Reasons Why Real Estate is a Safe Investment in 2024

Maxworth Realty India Review — In 2024, real estate remains a resilient and profitable investment. Maxworth Realty Company continues to be a trusted name in the industry, providing exceptional value and growth opportunities. Based on numerous Maxworth Realty India Reviews, here are the top 10 reasons why real estate is a safe investment this year and why partnering with Maxworth Realty is a wise decision.

Stable and Steady Appreciation

Real estate has a consistent track record of growth, and 2024 is no different. Maxworth Realty India Reviews consistently highlight robust property value growth driven by strategic location choices and market demand. Maxworth Realty Company projects are meticulously selected in areas with high growth potential, ensuring steady appreciation over time. Investing with Maxworth Realty means investing in properties likely to increase in value, offering a reliable return on investment.

Tangible Asset with Real Value

Unlike digital or intangible assets, real estate is a physical asset that you can see and touch, providing a sense of security. Maxworth Realty Company focuses on high-quality, tangible properties with significant real-world value. This physical nature of real estate adds stability and reliability to your investment portfolio.

Consistent Income Streams

Rental properties offer a steady source of passive income, and Maxworth Realty Company excels in delivering high-quality rental properties in high-demand areas. As cities and regions grow, rental demand remains strong, ensuring a consistent income stream for property owners. Maxworth Realty Reviews often commend our ability to provide reliable returns through well-managed rental properties.

Protection Against Inflation

Real estate is an effective hedge against inflation. As inflation drives up prices, property values and rental incomes typically increase as well. Maxworth Realty India Reviews reflect how our properties are positioned to benefit from these economic trends. Investing in real estate with Maxworth Realty helps protect your assets from inflation’s effects and maintains investment value over time.

Tax Benefits and Incentives

Real estate investments come with several tax advantages, including deductions on mortgage interest, property taxes, and depreciation. Maxworth Realty customer care is available to help you navigate these tax benefits and optimize your financial outcomes. Our team offers expert guidance to ensure you make the most of the tax incentives associated with real estate investment.

Diverse Investment Opportunities

Diversification is key to reducing investment risk. Maxworth Realty offers a wide range of real estate investment opportunities, from residential to commercial properties in various locations. This diversity allows you to spread your investment across different asset types and geographic areas, balancing your portfolio and mitigating risk. Maxworth Realty Reviews highlight our extensive portfolio and variety of investment options.

Advantageous Financing Conditions

Financing conditions in 2024 are particularly favorable for real estate investments. Lower interest rates and flexible financing options make securing funding easier. Contact us at Maxworth Realty contact number to discuss the best financing options for your investment. Our team can assist you in navigating the financing process and securing advantageous terms, enhancing your investment’s potential returns.

Urbanization and Smart Cities

The trend toward urbanization and the development of smart cities drives significant real estate demand. Maxworth Realty Company invests strategically in emerging smart cities and rapidly growing urban areas. These locations are set for substantial growth, making them ideal for real estate investment. Our projects in these burgeoning areas offer excellent growth potential and long-term value.

Resilience in Market Downturns

Real estate has shown resilience during economic downturns. Maxworth Realty Reviews often note our focus on quality and strategic locations, helping properties maintain value and performance. Our commitment ensures that our investments are well-positioned to withstand market fluctuations and continue to deliver stable returns.

Personal Use and Enjoyment

Beyond financial benefits, real estate investments offer opportunities for personal use and enjoyment. Whether it’s a vacation home, a primary residence, or a rental property, Maxworth Realty provides options that cater to personal preferences and lifestyle needs. Our diverse portfolio allows you to enjoy the benefits of your investment on a personal level while also reaping financial rewards.

Conclusion

Investing in real estate with Maxworth Realty in 2024 offers a blend of stability, growth, and personal satisfaction. Our extensive experience, supported by positive Maxworth Realty India Reviews, ensures that your investment is both secure and rewarding. For further inquiries or assistance, reach out through our Maxworth Realty contact number or connect with our Maxworth Realty customer care team. Trust in the leadership of our Maxworth Realty CEO and our commitment to delivering exceptional real estate opportunities as you make informed investment decisions this year.

Stay updated with Maxworth Realty for more insights and discover how we can help you achieve your investment goals in 2024.

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Balancing Articleship and CA Exams

You have to earn the CA (Chartered Accountancy) degree in the truest sense of the word. The course comprises a unique combination of practical experience and in-depth subject knowledge based on application. If you want to qualify as a Chartered Accountant truly you would have to gain hands-on experience along with possessing a detailed understanding of the subject. So, this brings us to a rather important question — how can you manage your CA exams and articleship? There are various techniques and tips that you can follow in this regard. However, in this blog, we have attempted to highlight some of the most important ones.

Taking the early dive

The first step that you need to take in balancing both these pursuits is to begin your exam preparations as early as possible. The task here is rather simple — you have to be ahead of your competitors. The CA exam syllabus is a rather vast one and you have to make sure that before the exam leave begins you have read the syllabus thrice over. Doing this will ensure that you are in a good position to clear the exam on the first go — keep in mind that you have only a short amount of time for this.

Squeezing out short time blocks

Remember that the office work in this case is rather demanding and so you would not have a lot of time to study and flow through your preparations as in so many other disciplines. This is why it is so important that you utilize any time block you can find to study in this case, no matter how short it is. This will help you be consistent in your pursuit of success. This means that you can study in the early mornings, on weekends, while traveling, and when you are waiting while at work.

Applying your learning

When you are working practically during your articleship you will surely encounter a few problems and issues as part of your office work. One of the worst steps that you can take in these cases is to head straightaway to a colleague or a senior so that you can get your doubts cleared. Grab this chance, open your book, and read up on the statutory provision that is applicable in this particular context. Always try to solve the problem by yourself first before you ask for help from anyone else. Remember, you will never forget a solution you have created yourself.

Learning the applications

The approach mentioned immediately above is just as important in reverse situations. This means that if you learn a new concept try to apply it to a workplace problem. For example, if you have learned about the TDS (taxes deducted at source) provisions in income tax, try to use it while reviewing the accounts books of your clients. Find out if the books are complete, correct, timely, and in compliance with said regulations or not. Not only would this fetch you the praise from your seniors it will also help you learn the subject completely.

Avoiding just-in-time studies and making space for revision blocks

Often it has been seen that CA students head to the final examination leave not having read all the subjects. They keep those away for those last-minute studies which is such a disastrous thing to do in this particular case. Simply put, it is hard to learn new concepts, revise them, and then apply them in the exam at short notice. So, reading them the first time during the final examination leave does not indeed make any sense at all. Also remember that the final examination leave is meant for revision, not first-time studies.

Avoiding social media

Even as phones get smarter and AI (artificial intelligence) learns at greater depth natural intelligence is facing the danger of consistent distraction. So, as a CA student, whenever you study you need to make it deep where you are learning really with all the focus you can muster and with complete vigor. As it is, we are always craving to know what is happening on our social media feeds — it has become an addiction rather than a habit. Such usage is damaging some parts of our cognitive brain functioning permanently.

Working efficiently in the office

Doing so will help you save time that you can use later on for studies. You have to ask yourself if you need to work those extra hours. Instead, pledge to use those working hours more efficiently. The very thought that working late nights at the office is a sign that you are working hard is wrong. A whole lot of studies have proven that if you stay late at the office it is only because you are not good enough to get it done within the stipulated time. You have to manage your office time better so that you can deliver the work on time efficiently.

Dealing with complicated topics first

As a student, it is rather normal that you would fall into the trap of taking up subjects that you feel at ease with during your preparations. In such cases, you may opt to leave the complicated ones for the end. This is a clear sign that you are procrastinating which you must avoid. Dealing with complicated subjects first is always hard and stressful. However, this is something that has to be done, and delaying it is never going to help for sure. So, if you tackle these first, and successfully so, it will feel great!

In the end, the importance of rest, rejuvenation and relaxation cannot be ignored in this particular context. A lot of times, your body and mind are affected by the toll that tight deadlines and harsh office schedules will take on you. This is why it is so important that you take some time off when you just relax, rest, and rejuvenate. There are so many ways you can do this such as taking short trips with near and dear ones, exercising regularly, meditating, indulging in some pleasant hobbies, and reading books outside the subject.