The recent plan to turbocharge Missouri’s economy is not only set to reduce the top personal income tax rate and offer a special non-refundable credit to certain low income earners, but also the tax plan would cut the corporate income tax rate from 6.25% to 4.35%. This change would mean that Missouri has the second-lowest corporate income tax rate in the county among states that impose corporate income tax.
To achieve a revenue neutral tax plan, Governor Eric Grietens has proposed to eliminate certain tax breaks and close certain tax loopholes. These include eliminating the 2% discount that is allowed when vendors file their sales and use tax returns or employers file and pay their withholding taxes in a timely manner.
In addition, all corporate taxpayers would be required to use single-sales factor appointment.
Missouri is one of the very few that states that allow individual taxpayers to deduct federal income paid from state taxable income. Under the Governor’s new tax reform, the 50% corporate tax deduction for federal taxes would be repealed, and the individual deduction would be phased out based on the tax payers income level.
With the income tax rate being slashed by 10%, this reform is likely to eliminate taxes for over 380,000 Missourians.
The type of business you operate determines what taxes you must pay and how you pay them. Below are five general types of business taxes:
Who must pay estimated tax?
- Excise Tax
Following President Trump’s signing of the Federal tax bill on 22nd December 2017, the effective lifetime Estate and Gift Tax exemption for US citizens and residents (domiciles) has been increased from $5.49m in 2017 to approximately $11.2m per individual (approaching $22.4m for US citizens or US domiciled married couples) with effect from 1st January 2018. The inflation adjustment factor has not yet finalised.
On the 25th January, the IRS released an advanced version of Rev. Proc. 2018-13, setting forth the unpaid loss discount factors and salvage discount factors for the 2017 accident year.
The discount factors provided are to be applied to calculate discounted paid losses under section 846 and the discounted estimated salvage recoverable under section 832
If you own a UK limited company and move to the US as a corporation, you may seem inundated by all the complex tax laws to follow and forms to fill out. Here is a brief guide that should help clarify the purpose of these forms and how to properly complete them.
If you work in the UK in a skilled profession (i.e. investment banking) and are in the country under a Tier 2 Visa, you still must pay taxes just like any other UK citizen.