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    Taxes

    Aims

    The aim of this module is to educate you about the different types of taxes, how they are calculated, how and when they are deducted, the importance of paying them, the purpose of them, and how they are able to manage their taxes.

    Objectives

    The objectives of this section are:

    • To provide an understanding of the purpose of tax
    • To train you to be able to plan for tax deductions

    Learning Outcomes

    By the end of this module, you will be able to:

    • understand the purpose of the tax system in the country they are living in.
    • be able to recognise tax deductions from their pay.
    • know how to calculate and submit annual tax returns.
    • understand income tax, relative to the country they are living in.
    • be aware of all other types of mandatory taxes which are applied in the country they are living in.

    In this module you will learn about the concept of tax and the principles that exist behind it. Tax especially becomes important when you start working and buying a house, but many everyday purchases require the payment of taxes. Although for some people in some situations tax can be avoided, for most of us tax is a fact of life which we all face.

    In this module you will learn about many of the terms that relate to tax systems across Europe and how they apply to your situation. At the end of the module you should be able to recognise when you are taxed and why. The module starts with a couple of definitions about tax so that the concept is easily comprehensible. You will then learn about the differences between public and private necessities and how public necessities have to be paid for by the tax we all pay.

    A breakdown of the different types of tax is explained so that you can recognise what you are paying. You will learn the difference between local and national tax, 4 types of tax systems, the distinction between gross and net pay and direct and indirect pay.

    Source: https://pixabay.com/illustrations/man-figure-toys-pokes-fun-at-blade-76196/