Tax return is a form that individuals and organizations submit to the tax authorities at the end of the fiscal year. The tax authority then works out their income tax or corporate tax.
A tax return can consist of a form or several forms or reports, depending on which country you’re in, and whether you’re submitting a personal tax return or a business tax return.
It includes information about what you or your business has earned in the last fiscal year, as well as applicable tax deductions.
When do you have to submit the tax return?
Usually the tax return is due after the end of the fiscal year. The fiscal year doesn’t always follow the calendar year, in the US for example, the fiscal year runs from 1st October to 30th September.
The deadline to submit will vary from country to country, so you should check what applies to your or your business.
What type of tax do I pay?
If you run a limited liability company, usually you and your business submit separate tax returns. That’s because businesses are considered separate legal entities from their owners.
The business has to pay corporate taxes on its earnings, while you as an individual have to pay income tax on what you earn. Examples of earnings you have to pay income tax on are dividends from shares in the business, a salary that you get from an employer, or interest on your personal bank deposits.
If you’re self-employed, for example a freelancer or contractor, your business income is usually combined with your personal income, and you submit one tax return only.
Get help with your tax return
If you’re unsure about how to submit your tax return, and how to do your accounting, you can ask for help from an accountant or a tax advisor. They can finalise your general ledger, file taxes, and also pay taxes on your behalf.