Tag: income statement

Income statement

How would the income statement if there were no withholding?

We are in full declaration of income and although many think about paying taxes that apply to us is actually a simple regularization. During the year the state will obtain revenue through withholding, either payroll or banks to give ourselves interests. And the statement is time to regularize taxes last year: adjust the difference between retained and therefore already entered by the State and it really should have paid.

Almost all modern states have some system of with holdings on. This allows prioritize paying taxes, do not charge cone that no risk money that we spend before addressing tax obligations. However, what would a world without deductions?

The statement would always pay

If there were no withholding income statement (except for very low income, who do not pay taxes) would always pay. Just look at the full amount of the statement to see that we pay a considerable amount of taxes. What happens is that we pay without realizing (so many people talk about your salary net without much idea what the gross).

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