Personal Tax
• Introduction
– “personal” vs “non-personal” → i.e. company
– an individual’s income from all sources →
brought together in a personal tax
computation

Personal Tax
• Introduction
– a very general form of calculating tax to be
paid, i.e. tax computation, is
income – expenses = net income
net income – allowance = taxable income
taxable income x tax rate = tax liability (i.e. tax
to be paid)

Personal Tax
income
– expenses
net income
– allowance
taxable income
taxable income x tax rate = tax liability

Personal Tax
• Introduction
– Tax computation can get very complicated,
but often it would just be the extended version
of this general form.
– reminder → list all the details you think are
relevant