portugal_income_tax.py

gistfile1.txt

def calculate_tax(income):
    # Calculate and deduct social security contribution first
    social_security = income * 0.11
    income -= social_security

    # Income is revenue minus expenses.
    # In simple accounting, 75% of income is taxable (with 25% assumed as expenses).
    # Save the original taxable income for both progressive tax and solidarity tax calculations.
    original_taxable_income = income * 0.75
    
    # Create a copy for progressive tax calculation
    taxable_income = original_taxable_income

    # Calculate progressive tax
    progressive_tax = 0
    if taxable_income > 83696:
        progressive_tax += (taxable_income - 83696) * 0.48
        taxable_income = 83696
    if taxable_income > 44987:
        progressive_tax += (taxable_income - 44987) * 0.45
        taxable_income = 44987
    if taxable_income > 41629:
        progressive_tax += (taxable_income - 41629) * 0.435
        taxable_income = 41629
    if taxable_income > 28400:
        progressive_tax += (taxable_income - 28400) * 0.355
        taxable_income = 28400
    if taxable_income > 22306:
        progressive_tax += (taxable_income - 22306) * 0.32
        taxable_income = 22306
    if taxable_income > 17233:
        progressive_tax += (taxable_income - 17233) * 0.25
        taxable_income = 17233
    if taxable_income > 12160:
        progressive_tax += (taxable_income - 12160) * 0.22
        taxable_income = 12160
    if taxable_income > 8059:
        progressive_tax += (taxable_income - 8059) * 0.165
        taxable_income = 8059
    if taxable_income > 0:
        progressive_tax += taxable_income * 0.13

    # Calculate solidarity taxes separately.
    solidarity_tax = 0
    # For original taxable income above 80,000, apply 2.5% on the portion between 80,000 and 250,000.
    if original_taxable_income > 80000:
        taxable_for_2_5 = min(original_taxable_income, 250000) - 80000
        solidarity_tax += taxable_for_2_5 * 0.025

    # For original taxable income above 250,000, apply an additional 5% on the excess.
    if original_taxable_income > 250000:
        extra_tax = original_taxable_income - 250000
        solidarity_tax += extra_tax * 0.05

    total_tax = progressive_tax + solidarity_tax
    return total_tax, solidarity_tax, original_taxable_income

if __name__ == "__main__":
    try:
        user_input = input("Enter your income (default 200K): ").strip()
        # If no input is given, assume the income is 200K.
        if user_input == "":
            income = 200000.0
        else:
            income = float(user_input)
        
        # Warn the user if the income is more than 200K.
        if income > 200000:
            print("Warning: The simplified regime only applies for incomes below 200K. Results might not be accurate for higher incomes.")
        
        total_tax, solidarity_tax, taxable = calculate_tax(income)
        effective = total_tax / income
        print(f"Taxable income: {taxable:.2f}")
        print(f"Tax owed: {total_tax:.2f}")
        print(f"Effective rate: {effective:.2f}")
        print(f"Solidarity tax paid: {solidarity_tax:.2f}")
    except ValueError:
        print("Please enter a valid number for income")