Answer the following questions

1. The system of levying tax is called what?
2. The rate of dividend with holding tax is
3. What are business allowable deductions

1 answer

Here are the answers to your questions:

  1. The system of levying tax is called taxation. It refers to the process by which governments impose a financial charge or levy on individuals or entities to fund various public expenditures.

  2. The rate of dividend withholding tax varies by jurisdiction. In many countries, it can range anywhere from 15% to 30% for non-resident shareholders, but specific rates can depend on tax treaties and local laws. It's important to check the applicable tax regulations in the specific country for accurate information.

  3. Business allowable deductions refer to expenses that businesses can deduct from their income before calculating their taxable income. Common allowable deductions include:

    • Cost of goods sold
    • Rent or lease payments for business property
    • Wages and salaries paid to employees
    • Utilities and operating expenses (such as electricity, water, etc.)
    • Marketing and advertising costs
    • Depreciation on assets
    • Professional fees (such as accounting, legal, etc.)
    • Insurance premiums
    • Travel expenses related to business operations

Always consult a tax professional or accountant for guidance tailored to your specific circumstances and local tax laws.