Types of taxes

The tax is mandatory, individually non-refundable payment charged by state authorities at different levels from organizations and individuals for financial support of the state. Collection of taxes is governed by the tax legislation. Collection of established taxes as well as the principles, forms and methods of their establishment, changes, cancellations, tax collection and control system form the fiscal system. Tax is a compulsory withholding state tax structures from individuals and entities required to implement the State's functions. All taxes are divided into several types. Taxes are divided into straight lines that are levied on economic agents for the proceeds of production factors and indirect that is taxes on goods and services consisting of the price of consumer goods. Direct taxes can be called such as personal income tax, profit tax and similar. The indirect taxes include sales tax, VAT and other. Also chord and income taxes are distinguished. The first state sets regardless of income level of the entity. Under the latter also involve taxes constitute a certain percentage of income. This dependence shows a marginal tax rate, which explains how the tax increases with an increase in income for one currency unit, or average tax rate: the ratio of tax to be levied on the income. Income taxes themselves are divided into three types. Progressive taxes are payments for which the average tax rate is dependent directly proportional to the level of income. Thus, if the income of an agent increases then tax rate increases too. Regressive taxes are a payment with an average tax rate is inversely proportional to the level of income. This means that an increase in income of the entity, the rate decreases, and conversely, the rate increases if the income is reduced. Proportional taxes are payments the rate of which is independent of the income quantity. Income tax for individuals is the main form of direct taxes. It is calculated as a percentage of the total income of individuals, less documented expenses. Income tax expense is a direct tax levied on the profits of the organization. Earnings for the purposes of this tax are generally defined as income from the company minus the amount specified deductions and rebates.