personal income tax

  

Definition

Tax paid on one's personal income as distinct from the tax paid on the firm's earnings. In an incorporated firm, the owners (shareholders) pay taxes on both their income (salary or dividend from the firm) firm's income (profits). In partnerships and sole-ownerships, the tax is paid only once on the firm's profits.

Use personal income tax in a sentence

  • When running a business, it is very important to separate your personal income tax from the income tax of your company.

    6 people found this helpful    
  • As both a shareholder and employee, John was taxed both at the corporate level and subjected to a personal income tax on amounts received for wages and dividends.

    9 people found this helpful    
  • Every April 15th, everyone's personal income tax submissions are due. Every citizen needs to file their tax return with the IRS for the income they received in the year.

    6 people found this helpful    
Show more usage examples...

Related Videos




http://www.businessdictionary.com/definition/personal-income-tax.html

Have a question about personal income tax? Ask for help in the
Community
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z