Tag Archives: tax

Thailand Set To Tighten Technology Tax

The Thailand government is looking into tightening tax imposed on technology and internet related companies such as Google.

According to a report, the Finance Ministry and the Revenue Department of Thailand plans to roll out the new technology and internet tax before 2017. Officials are currently researching about possible perimeters to put in place to toughen tax collection rules. The director-general of the Revenue Department, Mr Prasong Poontaneat released the statement in a recent talk with Reuters.

He declared that Thailand is currently focusing on changing the regulations to keep up with the growing tax affairs in Southeast Asia. The government has already formed a committee that is working on the matter. The committee has been active for two months now.

“We are studying this issue and have set up a committee to look into this over the past two months,” Prasong said. “The idea is to seek appropriate solutions for Thailand and it could involve an amendment in some regulations because current laws are outdated and have been used for more than 50 years” he added.

This tax tightening plan for technology comes after the consecutive issues faced by other Southeast Asian countries such as Indonesia and Singapore.

Just recently, the Indonesian government launched an investigation into Google after it allegedly evaded five years of taxes worth billions of dollars it made from ad revenues. The tax office is purportedly pursuing Google for the unpaid tax which may cost as much as $400 million USD for the year 2015 alone.

Meanwhile, Singapore, a major tech hub, has released in an e-mail last month that “profits should be taxed where activities giving rise to the profits are performed and where value is created” and that it does not excuse the “artificial shifting of profits”.

These tax crackdowns has been cited by American investors as a risk as it may scare away potential multinational companies that would want to invest in Southeast Asia. Despite this, Indonesia, Singapore, and now Thailand are pushing through with their plans.

4 Things You Didn’t Know Were Taxable

Benjamin Franklin once said, “In this world nothing can be said to be certain, except death and taxes.”

This statement has turned out to be exceptionally true as you are about to find out. Diego-based tax attorney Sam Brotman says, “”Technically, under Internal Revenue Code Section 62, the IRS can find a way to tax almost every way of receiving money … Even finding $20 on the street would be considered taxable, and the IRS would want their fair share of the money that you receive,”This basically means that any kind of money that arrives to you may be taxable according to him.

Of course most people won’t bother reporting that found $20 bill and the IRS won’t bother coming after them because “the reality of the situation also is that the IRS does not have enough enforcement resources to come after people who forget to declare little items on their return. It would cost them more to come after those people than they would get in tax revenue for the government.”

Despite this, there are still many things that the IRS gets a hold of. Read on and see for yourself.

1) Canceled Debt
Talk about bad news! While you’re struggling financially you’ll find out that achieving something as simple as cancelled debt will already be taxed by the IRS.

According to a Florida-based certified financial planner with Palisades Hudson Financial Group, Anthony Criscuolo, “If you are in financial trouble and are able to negotiate a cancellation of all or a portion of your debt, whether it is a mortgage, credit card or other personal loan (from a friend or family), the amount canceled is considered income to you.”

This means that you’ll have to consult with a tax professional especially if the involved money is significant in the eyes of the law which is approximately any amount exceeding $14,000. Meanwhile, the person who forgave you, if it’s a personal loan, would have to file a gift tax return.

2) Lawsuit Winnings
Let’s say you unfortunately had to go to court for suing someone. You could have settled and won the case giving you lawsuit winnings. This money will be taxed by the IRS. So you won but still you’d have to pay the state.

Tax accountant, Michael Eckstein, who is based in Huntington, New York says, “Unbeknownst to most, legal settlements and awards can be taxable. Their taxability is usually complicated and often depends on the details of a particular case. To oversimplify things, the taxability of compensatory damages depends on what loss the award was meant to make whole, whereas punitive damages are generally taxable.”

3) Gambling Prizes
Winning the lottery, as in the Powerball, is subject to taxes as most of us know. However, all other betting games are taxed as well, even the smallest ones.

Chicago tax attorney with Arnstein & Lehr, Bob McKenzie, says, “”Any gambling wins, including lottery and fantasy sports, are income [however there is a silver lining because] You can deduct your gambling losses against winnings.”

4) Work Rewards
Most of the time having the title of “Employee of the Month” or “Sales Agent of the Year” or “Best Worker of the Decade” entails monetary compensation other than the bragging rights. But you didn’t know is that seemingly virtuous awarding ceremony is also subject to taxes.

Tax and benefits attorney with Ivins, Phillips & Barker in the District of Columbia, Robin Solomon asserts, “”Rewarded for doing good work? Cash awards or bonuses from your employer are taxable. So are vacation trips for meeting sales goals.” But don’t lose hope yet, Solomon also declares, “”An exception applies for non-cash employee achievement awards – such as a gold watch or iPod shuffle – presented for your length of service or safety achievement. These are generally not taxable if valued below $400.”

Tax to the Max: Countries with the Highest Tax

Tax is a word that many people see as a burden, especially the working class. It is everywhere. Every move you make is taxed. You do your grocery shopping and there is tax. Eat out at a restaurant and there is tax. Your monthly wage for your desk work is taxed. Starting a business is taxed. If you try hiking on a mountain, there is environmental tax. Even staying at home, you are taxed because your house is mortgaged. Anything you do is taxed.
However, although it burdens most of us, some people have it better, or worse, depending on your perspective.
Highest Taxed Countries
1) Belgium
Keep calm and drink tea while you do your taxes. Western Europe has taken the top spot of the highest tax in the world with Belgium imposing a record 54.9% average. As per research of economists, Belgium has recently been experiencing a higher rate of employment. It’s economy is not doing so well too that’s why its government is compensating by increasing its taxes.
2) Finland
Opposite of what’s happening in Belgium, Finland’s unemployment rate is low as its economy is growing. Coupled with its high tax rate of 46.6%, Finland is slowly gaining its place in the world’s best economies.
3) Germany
Not far behind is Germany’s 45% average tax rate. Similar to Finland, Germany is going strong despite its high taxes. With its high taxes, Germany is able to provide high social security.
4) Denmark
Denmark also prospers at a marginal tax rate of 44.4%.
Taxation across the globe differ depending on the countries process of prospering growth. It is profoundly expensive to run a country thus the burden falls to the working class. With all the other factors that still need to be considered such as war, politics, resources, education, military, healthcare, etc., it is no wonder some nations need to tax more while others can afford to tax less. Taxes are essential to keep a country afloat.

Race to the Top: the Best Country in Terms of GDP

The GDP or the Gross Domestic Product is one of the most anticipated market data release in the world. The data in itself holds one of the heaviest weights in determining the future of a country and how it has done so far. A good GDP means a happy and stable economy which attracts more people to go in their country and invest. Meanwhile a bas GDP spells disaster as not only does it repel potential investors, it also gives the country a bad image. The GDP is like a report card at the end of the school year, with market participants waiting expectantly about the performance of the countries.
It is important for traders to keep an eye on the top of the class as they pave the way into the success of tomorrow. Meanwhile, traders are also advised to keep watch of the slow growers as they may offer unlimited potential for growth if you grab on to the right opportunity.
The World Bank and the International Monetary Fund are the guardians of records that show the comprehensive sources of statistics that gathers data such as life expectancy, inflation, unemployment report, and literacy.
Without further ado, here are the world’s fastest countries in terms of GDP growth/ the world’s slowest countries in terms of GDP Growth.
The Fastest GDP Growth
Since 1980, the International Monetary Fund has been tracing the path of countries around the world based on their GDP. It was done as part of the IMF’s World Economic Outlook database project. Obtaining sufficient information to accurately assess a country’s condition. However, the IMF has accumulated over thirty years worth of information that could at least shed some light on the world’s best growers.
As per data of IMF, the following are the countries which were able to advance the biggest.
Equatorial Guinea: 150% (1997)
Equatorial Guinea: 67% (1996)
Equatorial Guinea: 63% (2001)
Sudan: 62% (1997)
Kuwait: 51% (1992)
Evidently, Equatorial Guinea had the best performance, placing the top three slots in country that has grown in terms of GDP. According to the IMF, Equatorial Guinea was able to achieve this feat through traditional economic growth. This means that the country has exploited its natural resources, promoted privatization, and dramatically increased labor production. Equatorial Guinea was lucky to have utilized their natural gas and oil fields and had good governance. Sudan and Kuwait came second and third respectively but not because of traditional economic growth. The two then-war-inflicted country was able to bounce back because of one thing: oil.
Despite coming from a 22-year civil war, Sudan reached peace when the government and the rebel factions agreed to a ceasefire. Meanwhile, Kuwait was then recovering from an invasion from Iraq.
According to the IMF, the world GDP growth will average at 4.3% by the year 2013-2017.