Other Taxes

Question 1

Wealth taxes

Answer 1

Annual tax on individuals whose assets are valued above predetermined level on set date

Net worth taxes

% level is often low

Frances gov revenue arises from net worth taxes / not featured offshore

Question 2

Stamp duty

Answer 2

Payable on land & property transactions above certain value

Paperless transaction - reserve tax

Question 3

Annual tax on evoked dwellings

Answer 3

Introduced annual fixed sum for residential properties owned by non natural persons (co’s valued over 2m)

Question 4

VAT

Answer 4

Charged at flat rate & added to price paid for certain goods or services

Indirect taxes on consumption / value added to services it’s progresses to end user

Replaced sales tax as less open to abuse

Not offshore - creates advantage for retailers

Question 5

Withholding taxes

Answer 5

Deducted from interest paid to residents of foreign countries

Investors country may give relief against when assessing taxes due

Double tax agreements provide relief to reduce level of tax suffered

Question 6

Outline the different rules & laws regarding taxation

Answer 6

Pay as you earn or deduct at source

Taken in areas or based on previous fiscal year

Unearned income may be received gross & net of tax