The amount of money in favor of the taxpayer at the time of filing taxes before the Treasury is known as tax credit . To do this you must enter the documents that allow you to prove your expenses. Such as purchase invoices, invoices issued by suppliers and any debit or credit notes.
The tax credit benefit cannot be applied to any purchase. For this to happen, certain requirements established by the Income Tax legislation must be met. In many countries this type of credit has been implemented, as an option that allows its citizens to avoid paying double taxes.
Also called tax credit is the outstanding payments that a person has with the treasury. For example a declaration of your taxes, a fine or bond or for differences in payments. Everyone who receives an income and generates income, is obliged to address this aspect.
Types of Tax Credit
However, the tax credit, as already mentioned, may be the product of the citizen not doing for the Treasury. We must avoid not paying a tax on time, incurring an illegal tax. Also the omission of the total cancellation of the tax as appropriate. This type of tax credit is classified as:
– Blackberries : which are the product of the interests that are generated by the debts towards the treasury. Masses are calculated based on rates that can be variable. In other countries it may be through the value of a tax unit. This is calculated annually according to the projection made by the competent entity.
– Fines : Corresponds to the crimes that are incurred for evasion of tax laws. They vary depending on the tax regulations established by the competent body.
To avoid this type of tax credit, it is important to comply with the corresponding tax return. The guidelines established by the National Treasury must be followed. You should always have on hand the invoices corresponding to the payments made and thus avoid any irregularity.
Tax Credit Myths
Most of the time and as a result of the disinformation, people think that avoiding taxes helps to not diminish their assets. They are not only aware of their obligations, but also the benefits they can acquire if they know how to keep their fiscal history well. There are many expenses that can be tax deductible avoiding the increase in the amount. Of course, these may vary from one situation to another.
The amount of the advance payment to the attribute may be greater than the taxpayer’s responsibility. This surplus constitutes a tax credit in your favor. This credit can be used for a future payment of your tax obligations. The proper handling of payments is essential to have a pleasant relationship with the Treasury. We must recognize our duties as taxpayers before the government.
Tax Credit in the world
In some countries, the tax credit generated by an overpayment in relation to Income Tax, in advance of the tax or withholdings greater than the tax that is finally declared at the end of the fiscal year, can be assigned or sold to a third party.
This is how the tax credit can also become part of a tax market, where specialists provide their services to contact the bidders and the applicants of a tax credit. These consultants provide support for the analysis of credit quality, economic possibilities associated with its recovery, analysis of offers and requirements and in general a service to meet the requirements of clients entering the fiscal market.
The purchase, sale or assignment of a tax credit in favor of the taxpayer, gives tax credit efferents a possibility to recover financial resources that without an assignment operation would be lost due to inflation until the credit can be used for payment of own taxes.
In the fiscal market it is a win for both parties, since the one that sells the tax credit minimizes the monetary depreciation associated with the tenure of the credit, while the buyer obtains a gain for fiscal savings in the payment of his taxes. This is how these types of operations provide added value to the parties involved.