Questions regarding new taxable income in Romania
HI David, you guys did my taxes.. which was great.... you gusy were very professional. I was working in and out of Las Vegas at the time. I have a new job out of ROmania Starting on July 1st now, I work only out of Canada, and so far have made almost $60k over July to SEpt... wondering how much I should be putting aside for taxation, though I will have a ton of write offs from working in the US again.
ANy advice you can give me would be grateful. OF course I Will be paying you guys to do taxes for me again. I am assuming that everything was ok with my return, and I do not owe any further money to you. IF there is any balance please let me know so that I a nimmediately get it looked after.
Thanx you
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david ingram replies:
In general to cover both CPP and income tax, you should put away at least 33% of the net income (your profit) up to $100,000.
If you are going to be over $100,000, you should put away 45% of the amount over $100,000 - so 33% on everything up to $100,0000 and then start saving 45%
The reason for these amounts is that (depending on the province) there are 3 to 5 tax brackets fromn zero to over $120,000. Up to about $35,000, the income tax is 23 to 25% and the CPP is just about 10% on everything up to about $40,000. Over $40,000, there is no more CPP and the tax rate goes up 27% 29% 33 % 39% and then 44% at over about $120,000.
At $100,000
And, my client tomorrow is from Romania as well.
david
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