Differences and Similarities of Personal Income Tax between UK and US &Implications李亭 高娟娟 袁帅 孙璐 Differences and Similarities Implication Differences and Similarities Contents Taxation SystemTax jurisdictionScope of taxationIncome tax rateTax Credits Taxation System• Both UK and US are based on the comprehensive income tax base•Advantages of comprehensive income tax They both utilize domiciliary jurisdiction And source jurisdiction.In US, tax obligation is also based on citizenshipAdd your textAdd your textTax jurisdiction similarity difference Scope of taxation the gross income includes earned income, capital income and transfer income. the computation of taxable income and income tax liability Include Income tax computation, personal allowances and gift aid. Income tax computation consists of three columns---saving income, non-saving income and dividend income.UKUK USUS. Statutory redundancy moneyUKI Income from investments made through individual savings accountsInterest on damages for personal injureWinnings&ScholarshipsIncome from National Savings Certificates142536t tLocal authority grant 123usDeath benefits payable under a life insurance contractInterest on certain tax-exempt State and local bondsEmployer-provided health insurance45Employer-provided pension contributionsCertain other employer-provided benefits 1. Describe contents for a Chart 1. Describe contents for a Chart Description of the company’s sub contents Description of the company’s sub contents Description of the company’s sub contents Description of the company’s sub contentsChart Title in here20042005200620073050701202. Describe contents for a Chart 2. Describe contents for a Chart Description of the company’s sub contents Description of the company’s sub contents Description of the company’s sub contents Description of the company’s sub contentsIncome tax rateU S 1. Describe contents for a Chart 1. Describe contents for a Chart Description of the company’s sub contents Description of the company’s sub contents Description of the company’s sub contents Description of the company’s sub contentsChart Title in here20042005200620073050701202. Describe contents for a Chart 2. Describe contents for a Chart Description of the company’s sub contents Description of the company’s sub contents Description of the company’s sub contents Description of the company’s sub contentsIncome tax rateU S Tax CreditsQualifying travel expensesTravel expenses in the performance of duties are entitled to relief. Deductible interest Tax relief UK[Image Info] www.wizdata.co.kr - Note to customers : This image has been licensed to be used within this PowerPoint template only. You may not extract the image for any other use. Personal allowances Tax Credits Earned Income Credit Child tax credit US[Image Info] www.wizdata.co.kr - Note to customers : This image has been licensed to be used within this PowerPoint template only. You may not extract the image for any other use. Tax systemoptimizationImplicationsTax leakage levy and management capability improvementTurn The poor tax to millionaires taxCultivate Tax compliance consciousness of taxpayers Tax system optimization•Families file the tax return as units•Regional differences should be taken into considerationSet up Set up dual dual income income tax tax systemsystem Enlarge the tax baseExpense deduction Tax leakage levy and management capability improvement Establish taxpayer coding system Forcing of the non-cash income settlement system Establish personal property registration system[Image Info] www.wizdata.co.kr - Note to customers : This image has been licensed to be used within this PowerPoint template only. You may not extract the image for any other use. Turn The poor tax to millionaires taxStrengthen the collection and management of high earnersTake care of the low-income Cultivate Tax compliance consciousness of taxpayers2.Enhancement tax law propaganda1.Strengthen the government's knowledge of a clean and honest administration TEAM ONE 。