What is the tax?
Taxes are mandatory contributions imposed by local, regional, or national government agencies on everyone who is subject to the tax burden, whether individuals from end consumers or commercial companies, with the aim of disbursing the proceeds of that tax on various government activities from financing programs, health and education services, and maintenance of the state’s infrastructure in order to improve The economy, and the money earned from the income of individuals such as income tax, profits from invested capital, and stock dividends, is one of the most important sources through which tax collection is made and from which the government takes a percentage, and it should be noted that the payment of taxes is mandatory for the government and punishes all those who evade their payment legally; therefore, each country has a responsibility to administer and collect taxes.
What are the factors affecting the tax?
There are several factors and reasons that affect the tax system effectively and positively and ensure its stability and consistency with the state system. These factors include:
The country’s economic situation
The economic situation and the degree of its progress are two of the most important factors affecting the tax, so the economic situation of any country is one of the factors that greatly affect the tax and its percentage imposed on individuals and companies. Where the tax is affected by the recovery or contraction of the economy, for example, when inflation is caused by high prices, the tax increases. The opposite occurs when the economy shrinks, which works to reduce tax, and in cases of economic downturn, for example, the policies imposed by the state will have to do with encouraging and developing domestic investment and attracting foreign investment by reducing taxes for investment development, and it may also enact legislation that controls economic factors that in turn may affect the tax.
Epidemiological situation in the country
The tax is affected by unplanned, irregular, and out of the will of the state or government events, and among these is the epidemiological situation caused by the Corona virus, which led to the amendment of the tax and the introduction of a series of tax exemptions; many countries have implemented this.
The technological situation of the country
The technological factor of the state also has a prominent and fundamental role in the way taxes are imposed and applied, and this is demonstrated through the discovery and innovation of new taxes or their development.
Tax types
There are different types of taxes and several sources for collecting money from them for use by the government in different matters. Among these types are the following:
- Income Tax: A withholding percentage that is waived to the state of the income earned by individuals.
- Payroll tax: This is the percentage that the employer deducts from the employee’s wages and pays to the government on his behalf in return for financing the employee’s health insurance and social security.
- Corporate tax: a percentage that the government deducts from corporate profits.
- Sales tax: It is the tax imposed on goods and services.
- Property tax: It is a tax imposed on the value of land assets and various properties owned by individuals and companies.
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