Intangible tax

An intangible tax is a tax that is not visible or it cannot be touched. It means that a tax is levied on the things which are not concrete or non monetary values. It can be non monetary assets as a resource which is owned by a person or an enterprise which is controlled in order to get long term benefits. The three points of concern in case of intangible tax in properties are identifiably, control and economic benefits. Intangible tax is levied on the properties that could not be claimed as the personal properties but are with the person or the organization and is getting the benefits of holding the property.

Things coming under intangible tax

The materials that can come under as Good will in any form, having a concern value for a property, a workforce in place, business books and records, operating systems and any other information based item which is concerning the prospective costumer.
It can be a patent, a copyright, a formula, a process, a design or a pattern format or similar items which a person holds an authority. It can also be a costumer based intangible or a supplier based intangible or it can be any item which is similar to the above given items it can be also a license or a permit or a right that is granted by the government unit or agency with business interest which also includes issuances and renewals. Any franchise or trade mark or trade name that is adopted by the company or organization and it can be any contract which is in use or a term of interest that is given by the agency or the government.

For personal intangible tax it can be cash or savings accounts, certificates of deposits, individual retirements and cash equivalent of annuities and also life insurance policies. These are the things which are non-exempted personal things that come under personal intangible tax. Promissory notes and bonds that are issued by the local government body are exempted from the intangible tax. Shares of stock companies that are listed in the stock market and regular trading done in the stock markets are subjected for filing intangible tax returns. A tax payer can claim a discount for the early payment of intangible tax. The discount is generally up to 4 % of the intangible tax if it is filed at an early date. The last date is at the start of February in which four percent discount is given and it is three percent if paid on last of March. Two percent discount is available for last day of April and one percent discount is available on last day of May.

Penalties for intangible tax

If the person does not pay intangible tax on his income then that person is liable to penalty after the dead line. It is about 10 percent by the end of June and it gets increasing by each calendar month. If the tax remains unfilled for a certain month then the penalty exceeds up to fifty percent of the intangible tax.

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