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Tax Relief
Many of the expenses incurred by either an individual or a company are tax deductible on the assumption that they are supported by the appropriate documents.
Tax relief is granted in certain circumstances. The relief may be expressed as a tax deduction when the relief is granted by reducing the amount of income that is taxable or by the grant of a tax credit when the benefit is deducted directly from the tax due.
Depreciation of fixed assets (see above)
Business - related insurance premiums (property insurance and so forth).
Employer's contributions to social and medical benefits, as well as the employee's contribution to an old-age pension which is deductible to a limit.
Provisions in accordance with the various statutes, such as provisions to an insurance company against foreseeable claims and more.
Permanent residents are entitled to the following annual relief:
A taxpayer's annual exemption - CK 7,200.
Exemption for a non-working wife - CK 4,200.
Exemption for those receiving a 100% disability allowance - CK 9,600
Exemption for high school / university students - CK 2,400.
Contributions to the public benefit, to 10% of the tax.
Interest on mortgages (subject to certain conditions).
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