Uk Tax System Essay

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UK vs Philippines Tax System Income tax in the United Kingdom serves as the single largest source of revenue collected by the government like in the Philippines. United Kingdom's marginal income tax rate is deemed to be 60%. The taxpayers' income are assessed for tax according to a prescribe order, with income from employment using up personal allowance and being taxed first, followed by savings income and dividends. In the Philippines, an annual income of an individual is taxed based on taxable income and charges the high tax rate of 32% to those earning P500000 as their net taxable income. With regards to foreign income, the UK residents are taxed as United Kingdom income, but to prevent double taxation, the UK tax what is deemed paid abroad while in the Philippines a citizen who works and derives income from abroad and whose employment requires him to be physically present abroad most of the time at least 183 days during the taxable year is classified as nonresident citizen, that is taxable only on income which he derived from sources within the Philippines. UK's third largest source of government revenue is VAT or value added tax charged at 20% on supplies of goods and services. While in the Philippines, the VAT is charged at only 12% of every goods purchased and services rendered which is to become the burden of most Filipino consumers. UK's tax system as they say is a good one although citizens are charged with high tax rate. Their government tends to support them with all that they needed in terms of education, health, their welfare and all of their necessities. But with regards to the Philippines as we all experience some of the help that we needed tend to be more in the hands of few people, corruption has always been a problem. Overall, the two countries may have different tax system but in the end, the main goal of taxation is still to be maintained

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