Tiêu đề chapter 3 tax on free & non-commercial proffession.pdf ✅

CHAPTER THREE TAX ON Non-COMMERCIAL & Free PROFFISSIONS Dr. Rana Mahmoud
Introduction: At this chapter, we will explain another type of income taxes of natural and legal persons which is named free and non-commercial professions, so tax law exposed revenues of these professions to income tax. Free and Non-Commercial professions represent services are performed by a person to others in a particular activity who has a certain scientific qualification and special skills, and then taken a logic craft or profession to enable to get revenue; also it should be practiced normally. Also, income tax law distinguishes this source of income from other sources of the term of profession or non-commercial activities.
The law determined the following as Non –commercial Profession : 1- Lawyer 2- Doctor 3- Engineer (include agricultural engineer) 4- journalist 5- Auditing and Accounting 6- Expertise's 7- Translator 8- Painting , Sculpture and Calligraphy 9- Reading and religious chant 10- Authoring scientific and literary works, including delivering artistic, scientific and literary talks 11- Singing, playing, composing, dancing, acting, directing, cinematography, composing and other cinematic, television, radio and theatrical professions 12- Fashion Show 13- Customs Clearance 14- Copying on the typewriter and computer for those who carry out the activity themselves
CHARACTERISTICS OF TAX ON NON–COMMERCIAL PROFESSIONS 1- Revenue Source This tax is imposed on the net profit derived from professions self-employment and non-commercial professions practices by tax-payers independently. 2- Taxable Entities : This tax is imposed on the profit which is made by professional, such as certificated public accountants, lawyers, doctors, dentists, engineers, and architects. 3- Cash Basis : This tax is imposed on the profit that is measured on a cash basis, which means revenues and expenses are recorded only when received or paid. Thus, revenue received during the taxable year is included in taxable revenue, whether it is earned during the taxable year or earned during a year preceding or following the taxable year. Similarly, expense paid during the taxable year is deduct from revenue whether it is incurred during the taxable year or incurred during a year preceding or following the taxable year. In exception of that the situations when the expenditures create a fixed asset. In this case the taxpayer should recover the cost of the asset by means of depreciation or amortizations.