will my tax percentage adjusted after tax deduction?

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nokiassa
Posts: 55
Joined: Mon Jul 30, 2012 6:52 am

will my tax percentage adjusted after tax deduction?

Post by nokiassa » Mon Jan 16, 2023 1:27 am

I heard that even after tax deduction, my tax percentage will be the same based on my original total annual income. is that true? Thanks!



will my tax percentage adjusted after tax deduction?

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heretostay
Posts: 637
Joined: Sat Apr 08, 2017 12:54 pm

Re: will my tax percentage adjusted after tax deduction?

Post by heretostay » Mon Jan 16, 2023 7:31 am

nokiassa wrote:
Mon Jan 16, 2023 1:27 am
I heard that even after tax deduction, my tax percentage will be the same based on my original total annual income. is that true? Thanks!
No. Your tax rate is based on your pre-tax income amount.

machadolucas
Posts: 12
Joined: Tue Aug 16, 2016 5:49 am
Location: Helsinki

Re: will my tax percentage adjusted after tax deduction?

Post by machadolucas » Mon Jan 16, 2023 3:10 pm

In practice it depends on how you use deductions:

- You can add deduction information to OmaVero while requesting a new tax card. The new tax card for the rest of the year will then take into account your total estimated annual income and the deductions, and probably give you a lower tax rate which will make you pay less tax during the year. You can create as many new tax cards you need during the year to adjust changes in income and deductions.

- You can keep using the current tax card and next year include the information about deductions to your pre-completed tax return form. Then it will be calculated that you paid more taxes then you needed because deductions were not taken into account, and Vero will pay you back the difference.

Virtually you are able to choose how much tax you pay by playing with the amount of estimated income (and deductions) when requesting a new tax card. In the following year then it will be calculated how much income you actually had, and how much tax you were supposed to have paid. The difference then is either paid back to you or from you.


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