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Fair Tax

Financial

The FairTax eliminates the tax bias against investment.
Under the FairTax, savings and investments are not taxed at all. As Americans save more money, the pool of funds in lending institutions grows. When you add to this the flood of capital currently trapped offshore, we realize a huge increase in the pool of capital, thereby causing the cost of borrowing funds to drop.
The FairTax dramatically increases investment levels compared to the current income tax system.
Investment is important to all wage earners because of the relationship that exists between real wage rates and the level of capital investment per worker. In fact, the most significant contributing factor to achieving higher real wages is the level of capital investment per worker. A worker or farmer, for example, is more productive if he has more machinery and equipment to work with, particularly new equipment that incorporates the latest te…

Questions & Answers

Question: What do I need to declare as income? Stipends, travel grants, fellowships, loans?
Answer: Loans are not income, so no taxes on it. There may be a tax benefit when you pay the interest on the loan.
Fellowships are income, and you report the income on the wages line and add it to any w-2 income you receive. This income is not subject to social security taxes.
Stipends are income and you will either receive a w-2 (wages) or a 1099-misc (contract work is self-employment requiring Schedule C and Schedule SE).
Travel grants could be income or not. Contact the grant administrator to see if your particular travel grant will be reported to IRS as W-2 (wages), 1099-misc (contract work) or reimbursement of expenses (not reportable to IRS as income).


Question: What part of fellowship income is tax exempt?
Answer: Fellowship income is reported the same as w-2 wages, but is not subject to social security. In the same way as w-2 wages, your standard deduction and personal exemption amounts are n…

MexDer News

MexDer News

Two minute lockout
MexDer nominated by FOW as "The Emerging Exchange of the year" Awards 2007 Award ceremony
IOMA 2007 hosted by MexDer video
MexDer ranking #5 in the World according to FIA 2006
FIA Annual Volume 2006
On December 18 MexDer will carry out the delisting of the IPC options, the migration and listing of the IPC Options on Futures Contracts.
Mutual Funds are authorized to trade Derivatives by the National Banking and Securities Commission (CNBV) and the Central Bank of Mexico in December 2006
Modifications to the Federal Income Tax Regulation authorize private pension funds to use derivatives for hedging, October 3, 2006.

Filters for Volume and Price Changes for entering orders
Mexican Insurance Companies and Bonding Institutions may use derivatives products for the first time on MexDer. As published in the Official Gazette of the Federation on Circulars F-7.3 and S-11.4, respectively
Net capital rules for Banks will increase trading on derivatives by reducing …

Backup Withholding

Backup Withholding (28%) for Payments to U.S. Tax Residents

Prepared by: Jose A. Carus, Jr. (Tax Compliance Manager)
Prepare Date: 05/02/08
What is Backup Withholding and When should you withhold the 28% Backup Withholding from a payment made to a U.S. Tax Resident
What is Backup Withholding?
Government entities that make certain payments are required to withhold income tax of 28% from these payments if the payee is not exempt from backup withholding and fails to furnish correct taxpayer identification number (TIN). Backup withholding does not apply to wages or pension payments.
You generally must withhold 28% of certain taxable payments if the payee fails to furnish you with his or her correct taxpayer identification number (TIN).
"Missing" Taxpayer Identification Number
A taxpayer identification number is considered "missing" whenever (1) the TIN is not provided, (2) the TIN has more or less than nine digits, or (3) the TIN includes an alpha character in one or more of i…

U.S. INCOME TAX INFORMATION

U.S. INCOME TAX INFORMATION
TAX FACTS FOR US CITIZENS LIVING ABROAD, 2005
Who must file a return? Any US citizen (throughout this fact sheet the term US citizen includes both citizens and US resident aliens) who has worldwide income in excess of the sum of his or her standard deduction and personal exemption must file a return annually. For 2005 the standard deduction amounts for most people are $10,000 (married filing jointly), $5,000 (single or married filing separately), and $7,300 (head of household). The personal exemption amount is $3,200 for each taxpayer and dependent.
When is my tax return due? US citizens have an automatic extension to June 15 if their residence address is overseas on April 17, 2006. For overseas residents who must file tax returns for calendar year 2005, returns are due by June 15, 2006. However, any amounts owed must still be paid on or before April 17, 2006. The automatic extension applies only to filing the return; it does not affect the due date of any mon…

Tax Laws

Income Tax Laws
S.R.O. 600(I)/91, dated 02-07-1991. In exercise of the powers conferred by clause (c) of subsection
(4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979), and in suppression
of its Notification No. 707(I)/80, dated 26th June, 1980, the Central Board of Revenue is pleased
to specify the special rate specified in the table below for deduction of advance tax under the said
sub-section in respect of the payments specified in the table.
Table
Payment Rate
(i) Payments on account of supply of raw hides and skins One per cent.
(ii) Payments on account of supply of cotton lint. One per cent.
(iii) Payments on account of supply of raw wool. Two per cent.
(iv) Payments on account of transportation of goods through
goods transport vehicles.
One per cent.
(v) Payments on account of supply of rice. One per cent.
(vi) ----------------------- ------------
(vii) Payments on account of supply of motor vehicles to
Government Department and Corporations.
0.75 per cent.
(viii) Payments on accou…

News

Israel to Implement Income Tax Reforms, Vows Netanyahu,by Lorys Charalambous, Tax-News.com, Cyprus Last updated 8 hours ago Friday, March 06, 2009 Benjamin Netanyahu, Israeli Prime Minister-designate, has vowed to cut income taxes for low- and middle-income earners and reduce the corporate income tax on small businesses this year, contrary to recent reports suggesting reforms would be delayed.

Canada Grants Agricultural Tax Concessions, by Mike Godfrey, Tax-News.com, Washington Last updated 5 hours ago Friday, March 06, 2009 Canadian Finance Minister Jim Flaherty today tabled a proposal in the House of Commons for tax amendments to help farmers who have had to deplete their breeding herds of grazing livestock as a result of flood or excessive moisture.

Czech Government Approves Tax Amendments, by Lorys Charalambous, Tax-News.com, Cyprus Last updated 8 hours ago Friday, March 06, 2009 Reduced social insurance rates and shortened accelerated depreciation periods were approved by the Cz…

News

Obama Urged To Clarify NAFTA Intentions,by Mike Godfrey, Tax-News.com, Washington Last updated 5 hours ago Friday, March 06, 2009 Echoing concerns held by many businesses trading across America's borders, a senior Republican Senator has urged President Obama to clarify his intentions regarding the North American Free Trade Agreement between Canada, Mexico and the United States.
France Announces Gambling Tax Rates,by Amanda Banks, Tax-News.com, London Last updated 4 hours ago Friday, March 06, 2009 French government budget minister Eric Woerth has this week announced the tax rates which will be levied on the gambling industry. The opening up of the industry to private sector competition is in response to infringement proceedings initiated by the European Commission.
Chinese Stimulus Package Will Not Be Increased,by Mary Swire, Tax-News.com, Hong Kong Last updated 6 hours ago Friday, March 06, 2009 Chinese premier Wen Jiabao has announced that no more funding will be added to the c…

IncomeTax Law

Income Tax Laws
S.R.O. 600(I)/91, dated 02-07-1991. In exercise of the powers conferred by clause (c) of subsection
(4) of section 50 of the Income Tax Ordinance, 1979 (XXXI of 1979), and in suppression
of its Notification No. 707(I)/80, dated 26th June, 1980, the Central Board of Revenue is pleased
to specify the special rate specified in the table below for deduction of advance tax under the said
sub-section in respect of the payments specified in the table.
Table
Payment Rate
(i) Payments on account of supply of raw hides and skins One per cent.
(ii) Payments on account of supply of cotton lint. One per cent.
(iii) Payments on account of supply of raw wool. Two per cent.
(iv) Payments on account of transportation of goods through
goods transport vehicles.
One per cent.
(v) Payments on account of supply of rice. One per cent.
(vi) ----------------------- ------------
(vii) Payments on account of supply of motor vehicles to
Government Department and Corporations.
0.75 per cent.
(viii) Payments on accou…
International Student and Scholar Advising
Federal Income Tax Brochure
February 2009
James Tenney, Judy Todd, Robin Catmur
P R O F E S S I O N A L N E T W O R K S
© 2006, 2009. NAFSA: Association of International Educators. All rights reserved.
The information contained in this resource is intended to provide accurate information on federal income
taxes for advisers in the field of international education. It is provided with the understanding that the
publisher and contributing authors are not engaged in rendering legal services, and with the understanding
that the content does not constitute legal advice. NAFSA disclaims any and all liability resulting from
reliance upon this general information. Likewise, no information contained in e-mail messages or Web
postings, or in other correspondence or materials associated with this resource should be construed as
legal advice. Where legal advice or other expert assistance is required, the services of a competent
attorney should be sought.
Federal Incom…
An income tax is a tax levied on the financial income of people, corporations, or other legal entities. Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs).Contents[hide] 1Principles2History3Types3.1Personal3.2Corporate3.3Payroll3.4Inheritance3.5Capital gains tax4Around the world5Critique6See also7Notes8External links[edit]PrinciplesThe "tax net" refers to the types of payment that are taxed, which included personal earnings (wages), capital gains, and business income. The rates for different types of income may vary and some may not be taxed a…