Ask Experts Questions for FREE Help !
Ask
    krissjm's Avatar
    krissjm Posts: 8, Reputation: 1
    New Member
    		  
    #1

    Mar 6, 2008, 04:37 PM
    Tax system
    What is the main and major difference between Current tax system and flat rate tax system? And what is value added tax system? I did some research and read few articles, but they are all hard to grasp. Please help me in plain english...
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
    Full Member
    		  
    #2

    Mar 12, 2008, 07:28 PM
    Current tax system uses aggregate rate on income, that's why we have different tax brackets. The more money you make, you pay a higher RATE, (not just a higher amount with the same rate).

    Flat rate tax system charge everyone the same percentage, regardless how much the tax basis is.

    Value-added use a certain rate for tax calculation, but allow you to deduct the tax you paid (say material), so as a result, you are only paying tax for the part where value is "added". For example, you buy metal wires at $2 each, you twist them into funny shapes and sells them for $3 each, Value-added system just tax on the value added portion, $3-$2=$1.

    Of course there are a lot more rules on each to make them as confusing as they are, but these are the basics.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Why won't my infloor heating system circulate through the system? [ 3 Answers ]

I am having infloor heating circulation problems, My pump is running and the water at the pump is hot but it is not running through the rest of the piping. What would cause the water not to circulate?

System calling for heat but no response from system [ 1 Answers ]

My thermostat is set to 25 which is higher than the current temperature but my heating system is not firing up.. we have hot water - the boiler is a Micron - the heating timer is set to "on" on the program setting, and so is hot water which is fine but we have no heating, it was on earlier and went...

Smoke extract system & staircase press. System [ 2 Answers ]

I am working for a 35 storey tower. There are smoke extract and staircase/lift lobby pressurisation system in case of fire. Now consultant has already given the CFM required for these Fans, but I have to submit the calculations for the same to the Local Govt. authority. So please help me if...

How do I increase H2O pressure on well system with a water filtration system? [ 2 Answers ]

Howdy, I would like to know how I can increase my water pressure. My current system uses a well pump with a small pressure tank, and "D" control valve. It then runs through a WATERSOFT filtration tank, RAINSOFT water softner, and on the Hot water side, an AQUASTAR on demand hot water system. I...

View more questions Search