You should now know what is tax and what is taxable after watching Part 1 and Part 2 of taxation.
Next question: how is tax computed? Even if your taxes are usually automatically calculated for you in your receipts and forms, it is still useful to know where your money is going.
In this video, you will learn the different calculations for the different types of taxes out there, whether they are one-time taxes like your GST and stamp duty, or annual taxes like income tax and Quit Rent.
You will need to know what amount your tax will be levied on; whether you qualify for any exemptions, tax reliefs, or deductions; and what the tax rate is. You will also learn the difference between progressive, regressive, and proportional taxes.
There may be slight variations to these formulas, but with these basics in your back pocket, you’re ready to conquer the world of tax calculations.