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What are the characteristics of tax


Before starting to talk about the characteristics of the tax, it is necessary to know the general definition of a tax, and the tax in the general sense means the amount of financial increase imposed on the profits of institutions through their financial statements and individuals in certain financial ratios based on rules and principles recognized by the state, for example in some countries such as the Hashemite Kingdom of Jordan The sales tax is imposed at certain rates of 16%, and the self-employment tax is 5%. Tax rates and types differ from one country to another according to the policies and principles followed. The tax is one of the old financial ideas that were associated with the idea of ​​enhancing the role of collective participation among members of society in order to provide the expenses necessary to achieve a decent life. for members of the same community.

tax systems

Tax systems are divided into three main systems, which are regressive, proportional and progressive taxes, as this division is based on the income of individuals. The following explains the work of each of them:
  • Retroactive taxes: This type of tax does not take into account an individual's earnings or income level, as low-income individuals pay higher taxes than higher-income individuals under a regressive taxation system.
  • Proportional taxes: The basis of this system is that everyone is equal, meaning that the same tax rate is imposed on all individuals regardless of income level, which creates equality between the rates of tax paid.
  • Progressive taxes: This type of tax results in imposing a higher tax rate on high-income individuals than on low-income individuals, and this type of system aims to affect members of the upper class.

tax characteristics

The characteristics of the tax are many and varied. Each character has its own meaning and significance, and it is different that distinguishes it from others. In the following, some of them will be mentioned with a brief explanation of them:
  • Sufficiency: Tax is a form of an individual's contribution to the provision of services to the state, and it must be sufficient to provide public services.
  • In cash: the tax is a sum of money that cannot be paid in other ways, and this is one of the most important characteristics of the tax.
  • Widespread: meaning that the tax is spread as widely as possible to the individual sector and the economic sector.
  • Convenience: the tax must be levied in such a way that the individual is able to pay it. The tax is paid without any personal consideration: this is what differentiates it from fees.
What are the characteristics of tax
What are the characteristics of tax

Tax Categories

There are several ways to classify taxes in accounting books, but the following will be addressed to two main categories that have been classified based on who bears the final burden of tax:
  • Direct tax: It is in the first degree a tax imposed on the amount of income of individuals or establishments, and this is done depending on the financial statements. Usually, individual income taxes are imposed on the total personal net income. In addition, it takes into account the circumstances that affect the payment, such as family status, number of individuals.
  • Indirect tax: This type of tax is imposed on goods and services or on transactions. Examples of this type of tax are sales tax or customs duties.
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