We often refer to the first letter of tax as a payment of public funds to be paid to the state, but very few people fully understand it. So what is tax? All about taxes that you may not know will be shared in this article.
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What is tax? All about taxes.
1. What is tax
2. All about taxes that you may not know
Talking about taxes, there are many issues that we need to know and learn, each citizen has to fulfill tax obligations to the State and is also an entity contributing to the management of tax sources.
2.1. Why tax? Tax features
When human society was formed, a leadership organization was needed to be established and operated to benefit everyone. This requires a common fund to carry out and spend the necessary tax work to be formed. Currently, tax has become an indispensable tool in any society. The state sets up a tax system that is contributed by the population to have money to spend for its existence and activities.
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Tax features: Tax revenues that are concentrated in the State budget are state revenues that are formed during the state’s participation in the distribution of social wealth in the form of value.
Tax is a necessary premise to maintain political power and perform the functions and tasks of the state. Taxes are based on the actual situation of the economy (GDP, consumer price index, producer price index, income, interest,…).Tax is implemented on the principle of non-direct refund
2.2. The role of taxes
Taxes play an important role in the current society. Without taxes, the state will not be able to function properly. State budget revenue: Taxes are considered the most important revenue, with long-term stability. and as the economy develops, this revenue increases. Tool contributes to the adjustment of macroeconomic objectives: Contributes to the function of inventory, control, management, guidance and promotion of development production, expanding circulation to all economic sectors according to the development direction of the state plan, actively contributing to correcting major imbalances in the national economy.
The role of taxes and tax classification.
2.3. Tax classification
Based on many different criteria, people divide taxes into many types for easy management. Classification according to the form of collection includes:
Direct Tax: A type of tax collected directly on the income and benefits obtained by economic organizations or individuals. For example: corporate income tax, personal income tax, land ownership transfer tax. Indirect tax: A tax paid by manufacturers, traders or service providers to the State through the addition of taxes. This tax is included in the selling price to be borne by consumers. For example: Value added tax, special consumption tax, import and export tax.
Administrative classification includes:
State (national) taxes: paid to the central budget Local taxes: paid to the local government budget
This classification is often used in national accounting, based on how organizations manage revenues and allocate budgets to benefit from them. Tax classifications by economic nature include:
Based on taxable economic factors: Tax is divided into income tax, consumption tax, property tax, business tax Based on taxable economic factors and agents: Taxes include taxes on businesses such as: license tax, import-export tax, personal income tax, natural resources tax, special consumption tax, other fees and charges, land tax, and tax on taxes. According to the sector, the tax is divided according to the taxed economic sectors: For example, tax on insurance, tax on savings, tax on real estate…
2.4. Tax accountant
What is the profession of a tax accountant?