Types of taxes, the tax systems vary widely among nations or districts, so it is important that bidders carefully study the tax laws of the place where each Work is to be executed.
Types of taxes | Calculate Man Hours
A tax is a mandatory financial charge or some other type of levy levied on a taxpayer (a natural or legal person) by a governmental organization to finance public expenditure.
Most taxes scale according to the amount of annual income.
Countries or their governmental districts often also impose estate taxes, inheritance taxes, gift taxes, property taxes, sales taxes, payroll or customs taxes, etc.
In economic terms, taxes transfer wealth from individuals or businesses to the government.
Taxation is a much debated issue as it produces effects that can increase or decrease the growth and economic well-being of nations.
What are taxes?
Taxes are involuntary fees collected on individuals or corporations and enforced by a government entity, whether local, regional or national, to fund government activities. In economics, taxes are levied on the entity being taxed, or the final consumers of that entity’s goods.
To help finance public works and services, and to build and maintain the infrastructure used in a country, the government generally taxes its individual and corporate residents. The tax collected is used to improve the economy and all who live in it.
The money could be income earned from wages, capital gains from investment appreciation, dividends received as additional income, payment made for goods and services, etc.
A percentage of the taxpayer’s profits or money is collected and forwarded to the government. The payment of taxes is mandatory, and tax evasion – the deliberate failure to pay full tax obligations – is punishable by law. Most governments use an agency or department to collect taxes.
The OECD tax classification is as follows:
OECD known as the “club of rich countries”, it is an international cooperation organization where representatives of member countries meet to exchange information and harmonize policies with the aim of maximizing their economic growth and contributing to their development and also that of non-member countries.
Taxes on income, profits and capital gains
Income tax is a tax imposed by governments on income generated by businesses and individuals within their jurisdiction.
Individual taxes on income, profits and capital gains.
Taxes on corporate income, profits and capital gains.
Social Security Contributions
This tax, which applies to both employers and employees, finances Social Security and is collected in the form of a payroll tax or a tax on self-employment. It applies to:
Self-employed and employees.
Taxes on the payroll of workers and labour
A payroll tax is a tax that employers withhold from an employee’s wages and pay on behalf of their employees.
Periodic property taxes based on the value of land and real estate assets.
Periodic taxes on net wealth.
Inheritance, inheritance and gift taxes.
Taxes on financial and capital transactions.
Taxes on goods and services
Taxes on the production, sale, transfer, leasing and distribution of goods and services.
Taxes on specific goods and services.
Taxes on the use or permission to use or develop activities related to specific goods (licenses).
Tariff: taxes on imported goods
Requirement that has the objective of strengthening internal business.
Tax on exports or withholding
It is a class of taxes, levied by customs, which are applied on exported goods or services. Among the objectives of these taxes are:
To tax high incomes.
Promote the internal industrialization of exported raw materials.
Lower prices in the internal market of the goods and services that are governed by international prices; for example, the food and fuels.
This type of tax is common in countries whose exports are mostly of raw materials or products with low added value and is less common in countries whose exports are mostly of high value goods.
Types of taxes | Calculate Man Hours