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Offshore Business - Pay Low Tax

2024.09.23 04:26

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Congress finally acted on New Year's Day, passing the "fiscal cliff" rules. This law extended the existing tax rate structure for single taxpayers with taxable income of when compared with USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For which higher incomes, the top tax rate was increased to twenty.6% These limits are determined foreign earned income exception to this rule.

A tax deduction, or "write off" as it's sometimes called, reduces your taxable income through getting you to subtract facts an expense from your income, before calculating the amount tax a person pay. Within the deductions experience or the higher the deductions, the bottom your taxable income. Also, exterior lights you decrease your taxable income the less exposure you will have to the higher tax rates in the larger income brackets. As you read earlier, Canada's tax system is progressive to ensure that you the more you earn, the higher the tax rate. Lowering your taxable income minimizes the amount of tax payable.

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