Personal Income Tax (PIT)

An individual's income, wages, salaries, profits, and other forms of earnings are subject to personal income tax. The government imposes the tax, and depending on the jurisdiction, the taxes rate and procedures may change. Most jurisdictions have progressive income taxes, which implies that when a taxpayer's income rises, the tax rate does as well. The taxpayer's gross income, which is the total amount of money produced before any deductions or exemptions are applied, is typically used to determine the tax due. 

The government normally uses the tax collected from personal income tax to pay for numerous public services and initiatives, including healthcare, education, infrastructure, and social welfare. Taxpayers must submit a yearly tax return to record their income and determine the amount of personal income tax due in many countries. Several forms and schedules may be included in the tax return to disclose various sources of income and deductions. Penalties and interest charges may apply for failure to file or pay personal income taxes.