A tax is a tribute that is paid to the state to support public expenses.
There are different types of taxes.
All mandatory is the taxable event that burdens it is carrying out.
With Debitoor, you can control VAT (Value Added Tax).
These mandatory payments are required both from individuals and from legal entities.
Tax collection is the state’s way (as we know it today) to finance itself and obtain resources to carry out its functions.
Also read: What is GPS? – Definition, Work, Uses, and More
What are the Types of Tax?
The types of taxes are
Taxes according to the base
These are applied to goods and services and therefore affect people “indirectly” the best known is the value-added Tax.
They are those that directly tax people or companies.
For example, tax income, the profits or companies, inheritances and donations, and tax equity.
Taxes according to rate-based relationship
The higher the base, the higher the applicable tax.
Thus, for example, the higher the family’s income, the greater the amount that must be paid.
All taxpayers pay the same proportion of their base.
For example, a 10% tax is applied regardless of the number of company profits.
Taxpayers with a lower base end up paying a higher amount.For example, when the most impoverished people end up paying more taxes than the richest.
What are the Fundamental Principles of the Tax?
Generally, governments want taxes to be apply as fairly as possible.
The two fundamental principles apply horizontal equity and vertical equity.
The first holds that taxpayers who have the same characteristics should be treated in the same way.
The second principle indicates that people in different circumstances should be treat differently following some criteria of justice.
What are the Examples of Tax?
Value added Tax
Indirect and regressive.
.Personal Income Tax: Direct, individual, progressive.
Inheritance and gift tax: Direct, personal, subjective, progressive.
Economic activities tax
Direct, real, periodic.
Real estate tax
Tax on patrimonial transfers and documented legal activities Indirect.
What is the Classification of Taxes?
Tax is classified in various ways according to their characteristics.
they are those that fall directly on the person, society, company, etc.
Since they are base on economic capacity: possession of assets and obtaining income.
Direct taxes include personal income tax, corporation tax or inheritance, and gift tax.
contrary to the previous ones, indirect taxes are imposing on goods and services and the transactions carrying out with them.
That is when a purchase of goods or services is end.
For example, people indirectly pay tax.
The Tax does not fall on the specific person, although this person pays it but falls on the good or service that is acquired.
Examples of indirect taxes would be VAT, property transfer tax, or special taxes on alcoholic beverages.
We have a second classification that differentiates taxes between proportional, regressive, and progressive.
The fee to pay is calculating through a fixed percentage, such as VAT. The tax base or income of the individual subject to Tax is not taking into account.
the higher the profit or income, the lower the percentage of taxes that must be paid.
An example would be the VAT on essential goods since it affects individuals with lower incomes to a greater extent.
the higher the profit or income, the higher the percentage of taxes that must be paid.
What are the Main Elements of Tax?
The main elements that will help us understand what taxes are are:
The situation or activity that motivates the tax obligation.
The person or organization that faces the obligation.
The amount on which the Tax is applying.
It is the proportion that is applying to the tax based to calculating the amount to be paid.
This is the amount that should be paid.
Differences Between PrAnd Advertising Agencies
Many people commonly confuse between Pr and Advertising, and it is understandable as they are pretty similar. Both advertising and…
PKT Cash Crypto –Tips on Earning with Your Excess Network Bandwidth
PKT Cash Crypto – The possibility of earning because of what the internet offers is not a new subject. Many…