>>>Our tax is payed via PAYE (Pay as you earn). Your salary is known, then the tax-free part is put aside, then the tax on the remainder is split into 12 equal parts, and that is deducted each month. No filing - that's just for self-employed people.
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>>Do you mean that salaried folks don't file tax returns? What are they doing if they have external income (banking interest, capital gains etc.)?
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>D'you know? I've never thought of that. When I was self-employed, I had to declare all that. Ah, I think that dividends from investments, and all that, have tax deducted at source, i.e. if your bank gives you interest for a savings acc, then Uncle Sam's already had his cut - you get it net.
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Uncle Sam doesn't do it for sure. Also, if tax rate is progressive then how banks/brokerages may know how much to withhold?