What are tax allowances?
A tax allowance is an amount of money you can earn or spend without paying any tax on it.
Every citizen has a "personal allowance," or the amount of money they can make or spend
before having to pay taxes.
The primary function of the tax allowances is to lower your taxable income. As a result, you can keep more of your annual taxable income. You only have to pay income tax on the amount of your income over your tax exemptions.
How does it work?
Tax rates and brackets are based on a person's filing status. As a result, allowances
may be applied differently in different countries. The amount of a taxpayer's tax allowance
is determined by both the allowance itself and the tax rules of the nation in which the taxpayer resides.
In addition, tax relief may be provided in some jurisdictions in the form of a tax credit deducted directly from the tax liability rather than the individual's income. In other situations, tax allowances are used to lower the tax rate.
With the use of the tax allowances provided by Native Teams, we would be able to wire funds from your Native Teams wallet to your bank account free of tax on the aggregate amount of all the tax exemptions selected.