Writing

10. Read the text carefully and write the summary. Use the comments and useful phrases from Chapter II, Unit I, ex.9.

Russia has a uniform rate of tax on the income of individuals. As of 2011 tax in Russia is payable at the rate of 13% for an individual on most income (non-residents 30%). Russian residents pay 9% on dividend income. Non-residents pay 15% on dividend income.

Exemptions are granted to certain income earners.

The standard rate of Russia corporate profit tax in 2011 is 20%. Companies pay 9% tax on dividend income. The tax on company profits is made up of 2 rates:

- Federal tax - 2%.

- Regional tax - 18% (with a possible incentive reduction of up to 4.5%).

An individual is liable for tax on his income as an employee and on income as a self-employed person. Tax will be payable on income earned in Russia and overseas by an individual who meets the test of a "permanent resident" of Russia. A foreign resident who is employed in Russia pays tax only on income earned in Russia. To be considered a Russian resident, residence must be established of at least 183 days in Russia during 12 months in a calendar year.

An employer is obligated to deduct, immediately, each month, the amount of tax and national insurance due from a salaried worker.

A self-employed individual is obligated to make advance payments on income tax that will be offset on filing an annual report. In the case of a new business, the advance payments will be calculated on the basis of the business owner's estimate. The advance payments will be made at least 3 times in each year.

Unit II Taxation in the uk and in the usa

Reading

Taxation in the uk

Taxation in the United Kingdom may involve payments to a minimum of two different levels of government: the central government (HM Revenue and Customs) and local government. Her Majesty's Revenue and Customs (HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes and the payment of some forms of state support. HMRC was formed by the merger of the Inland Revenue and Her Majesty's Customs and Excise which took effect on 18 April 2005. Central government revenues come primarily from income tax, national insurance contributions, value added tax, corporation tax and fuel duty. Local government revenues come primarily from grants from central government funds, business rates in England and Wales, Council Tax and increasingly from fees and charges such as those from on-street parking.

There are a number of different taxes that you may have to pay in the UK.

You will normally have to pay UK tax on all of your worldwide income if you are a UK resident. In the UK, an individual is assessed for income tax for the financial year starting on 6 April in one year and ending on 5 April in the following year.

You must pay corporation tax if your company is resident in the UK. Corporation tax is payable on worldwide profits after they have been adjusted for tax purposes.

Most working people in the UK have to pay National Insurance contributions (NICs), which are collected by HM Revenue & Customs (HMRC). There are six types of NIC, some of which are paid at a flat rate and some which are linked to earnings. Employers also have to pay NICs on the earnings and benefits they provide to employees.

PAYE (Pay As You Earn) is the system that HM Revenue & Customs uses to collect Income Tax and National Insurance contributions (NICs) from employees' pay as they earn it. You may be sent a PAYE Coding Notice which shows your tax code, which is used by your employer's pay system to calculate how much tax you pay. At the end of the tax year you should receive a P60 (End of Year Certificate) from your employer. This shows how much you have earned during the year and how much tax you have paid on these earnings.