Are taxes other than those described above imposed on individuals and, if so, how do they apply?
Private Client (2nd edition)
The provision of services and the sale of assets might be subject to value added tax (17%) in Israel, subject to the condition of the Israeli Value Added Tax Law and the circumstances of the services or sale.
Pay Related Social Insurance (“PRSI”) – PRSI is Ireland’s equivalent of social insurance or social security. The amount of PRSI paid by an individual depends on that person’s earnings and the type of work they do.
Universal Social Charge (“USC”) – USC is payable on gross income, including notional pay, deductions for certain capital allowances.
In addition to the taxes described above, a number of states also impose an income tax on state residents. State income taxes are levied by many, but not all, of the states, as well as some local jurisdictions, and the rates vary greatly. For tax years beginning after December 31, 2017, individual taxpayers may elect to deduct state and local sales, income, or property taxes up to a limit of $10,000 ($5,000 for a married taxpayer filing a separate return). Such taxes in excess of those limits are not deductible for US income tax computation.
Sales and use taxes are other taxes imposed on individuals, generally at the state and/or local level. Sales and use tax rates of the states and local jurisdictions vary widely. Excise taxes, also known as luxury taxes, can be imposed at the state and federal level. US excise taxes are imposed on the purchase of heavy tires, gasoline, beer and liquor, cigarettes, airplane tickets and fishing equipment.
The following rules apply to stamp duty:
- No stamp duty is payable in respect of transactions with a consideration of €5,000 or less.
- For transactions with a consideration in excess of €5,000 but not exceeding €170,000, the rate of stamp duty is €1.50 for every €1,000 or part thereof.
- For transactions with a consideration in excess of €170,000, the rate of stamp duty is €2 for every €1,000 or part thereof.
- The maximum stamp duty payable on a contract is €20,000.
- Where no amount of consideration is specified in the contract, the stamp duty is €35.
- For a transaction which is evidenced by several documents, stamp duty is payable on the main contract and ancillary documents are charged at a flat rate of €2.
- Stamp duty of €430 is payable on the creation of a trust under the International Trusts Law.
Stamp duty must be paid within 30 days from the date of execution of the relevant documents or, if they are executed abroad, within 30 days after they are received in Cyprus. If stamp duty is paid late, a surcharge of approximately 10 percent of the unpaid amount is payable if payment is made within six months after the due date. Otherwise the surcharge is twice the unpaid amount.
Land transfer fees are payable when title deeds are issued by the Department of Land and Surveys. If VAT is payable on the property no transfer fee is payable; otherwise the transfer fee is charged at progressive rates on successive tranches of the acquisition price (or market value of gifts) as follows:
- Up to €85,000: 1.5 percent.
- €85,000 to €170,000: 2.5 percent.
- Above €170,000: 4 percent.
No other direct taxes are imposed on individuals.
Value Added Tax (VAT) is a federal tax. It taxes sale of goods located in Argentina, services performed in Argentina, the imports of goods and services performed abroad but economically used in Argentina.
The general rate is 21% but there a increased rate of 27% applies to certain services such as communications services, natural gas, water and power and a reduced rate of 10,5% applies to services like passenger transports, provisions of fruits and certain medical services.
The VAT is a monthly tax. The submission of the tax return and the payment of the respective balance must be done between the 15th and the 21st of the following month.
Non-residents performing taxable services in Argentina are subject to VAT. The obligation to collect and report the VAT relies on substitute responsible domiciled in Argentina. The tenant or the individual perceiving the service and who carry out such operations as intermediaries or on behalf of foreign beneficiaries, provided that they are carried out in their own name are considered substitute responsible for the tax.
Stamp tax is a provincial tax. Each of the provinces legislates in its tax code. It taxes the formalized acts, contracts and operations within the provincial jurisdiction. This tax reaches the public deeds or instruments of any nature or origin in which transfer the legal ownership of a property.
The instrument must have the following characteristics to be met by the tax:
- Onerous: there must be a price or a consideration.
- Formalization: the acts, contracts and operations must be formalized in public or private instruments.
- Territoriality: must be celebrated within the province, must cause effects on it.
The average tax rate is 1% applicable on the economic value of the contract. The submit and pay must be made by the taxpayers or third parties involved in the celebration of acts, contracts or operations reached by the tax, formalized through private instruments within 15 working days or calendar days (depends on the province) from the conclusion of the contract.
Individuals may be subject also to indirect taxes, such as VAT, registration tax (which may apply upon e.g. the purchase of Italian real property), cadastral and mortgage taxes (which apply upon any transfer of Italian real property at the overall 3% rate) or the financial transaction tax. The financial transaction tax applies, among the others, to transfers of the ownership of shares in Italian companies (at the general rate of 0.2%).
Payroll tax applies to employers in Bermuda, which is split into an employer and employee portion. The employer is responsible for the payment of both portions, but they may deduct the employee portion (which is up to 8.75%) from an employee’s salary (in whole or in part). The employer portion is up to 10.75%, depending on the individual’s salary.
Customs duties are charged on the importation of goods to Bermuda at the rate of 25% (subject to limited duty free allowances).
There is no sales tax or VAT, and no other taxes applicable to individuals in Bermuda.
Purchasers of shares registered in the UK may have to pay stamp duty or stamp duty reserve tax at 0.5% on the consideration. Individuals who make supplies of goods or services in the course of a business may have to charge value added tax ("VAT") at up to 20% on their supplies and account for that tax to HMRC. VAT and customs duties may be charged on the import of goods from outside the European Union. Excise duties are generally charged on motor fuel, alcohol, tobacco, betting and vehicles.
The following taxes are relevant to individuals in Colombia:
- Value Added Tax:
VAT is levied on the sale or import of goods into the country and rendering ser-vices when the direct user or recipient is located in Colombia. Certain goods (livestock, certain fruits and vegetables, seeds and others) and services (catering services for companies, food preparation services, bar services) are excluded from VAT. The general rate is 19%, but there are certain goods and services subject to a 5% (cof¬fee, corn for industrial use, agricultural machinery, pre-paid medicine plans, security services and temporal services).
- Consumption tax:
As from 2019, a national consumption tax is triggered on the sale of immovable property, different from rural properties destined to agricultural activities, new or used, whose value exceeds 26,800 Tax Value Units (Approx. USD 294.000). , including those made through assignments of fiduciary rights or funds that are not listed on the stock exchange.
- Industry and Commerce Tax:
A municipal tax is triggered on revenues derived from the performance of industrial, service and commercial activities within a Colombian municipality at an applicable rate of 0.7 per cent to 1 per cent. The tax is triggered on gross income, excluding revenues for exports, proceeds from the sale of fixed assets, refunds, subsidies and withholdings.
- Income tax withholding:
As a mean to collect income taxes in advance, Colombian law establishes a system of income tax withholdings that requires every per¬son making payments to a taxpayer to withhold a certain percentage, depending on the income characterization. For those who must file an income tax return, all amounts withheld or self-withheld are prepayment of the final tax liability and as such are credited on their return.
- Presumptive income tax:
Presumptive income tax is equivalent to a percentage of the taxpayers net equity of the prior taxable year. Taxpayers shall only pay income tax under this system when the presumptive income basis is higher than the ordinary income. The net equity is determined by subtracting the liabilities from the gross equity (assets) owned by the taxpayer on the last day of the year or taxable period.
Presumptive income corresponds to 1.5% for fiscal years 2019 and 2020 and as from 2021 it will be 0%.
In relation to individuals, the base of presumptive income of the taxpayer is compared only with the general basket income.
There is an import tax in the Cayman Islands. Import duty is generally at a rate of 22% to 27% on the importation of most goods.
There is VAT (19%, in general) on goods and services. Members of the catholic or evangelic church will also be subject to church tax (about 9% of the income tax).
Goods and services tax ("GST") at 7% is levied on all taxable supplies of goods and services made in Singapore by a registered business and on the importation of certain classes of goods.
Besides PIT, Stamp Tax, IMT and IMI, and also the different sales taxes existent, no Portuguese taxes are personally imposed on income or property held by individuals.
All French taxes potentially due by non-resident individuals on French real estate also apply to French resident persons. As described in § 2 the tax treatment may however differ.
In addition to Income Tax in the terms explained before, other taxes may apply depending on the activities performed by the individual. Between the main taxes, we could include consumption taxes, which affect the entire population. We will not enter into more details since we consider those taxes exceed the purpose of this document.
Taxes on the property of vehicles (IPVA), import of duties (II, PIS/COFINS, IPI and ICMS), financial transactions (IOF), social security contributions, and on services (ISS) might also be due by individuals according to specific transactions, but normally not in a regularly basis.