by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Income Tax?An income tax refers to the amount of money that individuals and businesses are mandated to pay on income earned and profits made. There is no fixed rate for income tax, rather, the amount paid differs from person to person and business to business....
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Income Exclusion Rule?In a tax system, an income exclusion is defined as a rule that distinguishes taxable income from non-taxable income. In the United States, the Internal Revenue Service developed the concept of income exclusion, there are certain...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Flat Tax?An income tax system in which all individuals (taxpayers) pay the same tax amount without giving regard to the divergence of their income is a flat tax system. A flat tax system maintains equal tax rate on all taxpayers regardless of their income....
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Foreign Account Tax Compliance Act (FATCA)?In the United States, the Foreign Account Tax Compliance Act (FATCA) is a law that requires all citizens of the US who are either at home or in foreign countries to file a report on their account holdings. FATCA...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Flow-Through Entity?A flow-through entity is a business entity is which income of the entity passes on to the investors or owners of the entity. In this legal entity, income flows through to the owners of the entity or investors as the case may be. Hence,...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is an Import Duty?When goods are purchased from abroad and imported into a country, a type of tax is charged on the goods, this is called the import duty. An import duty refers to the tax an importer pays on the goods being shipped or transported into a country,...
