Problem
Excessive provisional income tax
Other Names:
Discriminatory tax requirements for self-employed persons Nature:
A self-employed person in most countries must pay provisional income tax in advance of earning the income, calculated on the basis of anticipated income. The system can discriminate against those starting out on a career as, say, a consultant, where the real income is likely to be much lower in the first few years than a reasonable wage. Yet the person is bound to pay inflated tax instalments, which further deplete capital resources and which may not be refunded for months or years.
Broader Problems:
Excessive taxation Strategies:
Promoting self-employment Subject(s):
Amenities → Living conditionsCommerce → Taxation
Social Activity → Self employed
Society → Individuals
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST