National Municipal Taxation Taxation FIM FIM CALCULATION OF TAXABLE EARNED INCOME Salary 220,000 220,000 Deductions Trade union membership fee ( 2,000) ( 2,000) Travel expenses exceeding FIM 2,000 ( 1,000) ( 1,000) Standard deduction ( 2,100) ( 2,100) Child care deductions ( 8,400) ( 10,500) Employment pension premium and unemployment pension premium* ( 7,040) ( 7,040) ( 20,540) ( 22,640) 199,460 197,360 CALCULATION OF TAX ON EARNED INCOME National income tax on FIM 154,000 24,550 FIM 45,460 at 33% 15,001 FIM 199,460 39,551 Municipal tax on FIM 197,360 at 16% 31,577 Church tax on FIM 197,360 at 1% 1,973 39,551 33,550 * FIM 220,000 (0.03 + 0.002) = FIM 7,040 CALCULATION OF TAXABLE INVESTMENT INCOME Capital gain 30,000 Rental income 28,000 58,000 Deductions Expenses on rental property ( 14,000) Interest expense Rental property ( 14,000) Housing interest ( 40,000) ( 68,000) Loss ( 10,000) Tax credit for excess interest expense FIM 10,000 x 0.25 2,500 National income tax 39,551 Tax credit ( 2,500) National income tax payable 37,051
The content of this article is intended to provide a general information on the subject matter. It is therefore not a substitute for specialist advice.