Tax paid on one's personal income as distinct from the tax paid on the firm's earnings. In an incorporated firm, the owners (shareholders) pay taxes on both their income (salary or dividend from the firm) firm's income (profits). In partnerships and sole-ownerships, the tax is paid only once on the firm's profits.
Use 'personal income tax' in a Sentence
When running a business, it is very important to separate your personal income tax from the income tax of your company.
As both a shareholder and employee, John was taxed both at the corporate level and subjected to a personal income tax on amounts received for wages and dividends.
Every April 15th, everyone's personal income tax submissions are due. Every citizen needs to file their tax return with the IRS for the income they received in the year.
You Also Might Like...
