Most of companies and individual in all countries need to submit their income tax every years. It is important to submit income tax before due date to avoid penalized. The income tax payment is based on the percentage of company/individual total income. The percentage is different among others countries.
Many countries use their own system to calculate the income tax but all of the payer need to return their income tax return files in certain period. The tax will be used for government services. Many of payer don’t pay attention of the income tax and always do it at last minute. It will become chaos in their organization to prepare the files.
This is bad habit and you will lose some money. Prepare early and you can see there’s a huge amount to be saved from paying taxes.
How to reduce your income tax
1. You need to mentioned about donation your organization/individual that you give. Some of country will give rebate based on your donation.
2. Insurance also can be mentioned in the income tax filling. It will reduced your income amount and taxes.
3. Company advertisement also give some rebate in the tax filling.
4. Seek services from chartered accountant. They will know how to prepare and reduce your income tax return.
5. Restructuring your salary may not always be possible. But if your company permits, or if you are on good terms with your HR department, restructuring a few components could reduce your tax liability.
6. Give your employer details of loans and tax saving investments beforehand, to prevent any excess deduction.
7. Contribute to a health savings account if you have a high-deductible medical plan. The contributions unused for medical expenses can roll over indefinitely, and grow tax-free.
8. Unreimbursed vehicle expenses are another frequently overlooked tax break. You can’t deduct commuting costs, but if you travel to satellite offices or drive your own vehicle for business and aren’t reimbursed, you can deduct mileage costs.
It is important for you to keep receipt for those method to prove it. So why pay more if you can reduce it for others.