Types of taxes and tax benefits: concept, classification and conditions for obtaining

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In the article we will consider the types of taxes and tax benefits.

A tax is a mandatory payment that is levied by government authorities at various levels from individuals and organizations in order to financially support government activities.

In a broad sense, taxes also include duties and fees, that is, mandatory payments by firms and households to the state for granting permits, rights and performing other legally significant actions (for example, license, customs fees, state fees for notarial acts, for consideration of cases in courts, registration of acts of civil status, etc.).

Describe the types of taxes and tax benefits in more detail.

Taxes appeared with the emergence of the state, they are the main source of its income. They are classified according to the following criteria.

By collection method: direct andindirect

Direct levied on the property or income of the taxpayer (legal or natural persons). Direct taxes include: income tax, corporate income tax, mineral extraction tax, transport tax, property tax of individuals and organizations. A feature of such taxes is that the taxpayer and the tax bearer is the same person. Indirect taxes are levied on services and goods, included in the cost of products, they are paid by consumers. The category of indirect taxes includes: excise taxes on specific types of goods (cigarettes, petroleum products, alcoholic beverages, cars), customs duties, value added tax. A feature of indirect taxes is that the tax bearer and taxpayer are different agents. In this case, the taxpayer is the buyer of the service or product (the tax is paid by him upon purchase), and the tax bearer is the company that produced this service or product (the tax is paid by it in favor of the state).

According to the peculiarities of tax rates

Proportional, progressive and regressive. Progressive taxes are taxes whose rates increase as the size of the object on which they are imposed increases. Such a system maximizes income redistribution, since we althier citizens pay the bulk of their income in taxes than less we althy people. Proportional - these are taxes, the rates of which are unchanged regardless of the size of the object. The most striking example of a proportional tax in Russia is the tax onorganizations' profits. Regressive taxes are those whose rates decrease as the amount of objects of taxation increases. The use of the regressive system mainly pursues the goal of withdrawing the income of we althy citizens “out of the shadows.”

By level of tax system

According to the level of the tax system, taxes are regional, federal and local. Federal are obligatory to payment on all territory of the country. This category includes value added tax, personal income tax, excises, corporate income tax, water tax, fees for the use of wildlife and biological water resources, state duty and mineral extraction tax. Regional taxes are introduced by the subjects of the Russian Federation, they are obligatory for payment only on the territory of such subjects. The category of regional taxes currently includes transport tax, tax on property of institutions, tax on gambling. Local taxes are understood as those established by the provisions of the Tax Code of the Russian Federation and legal regulations of the representative bodies of municipal entities, they are obligatory for payment in the territories of these local entities. This category includes land tax, property taxes.

Let's talk about the concept and types of tax benefits.

What are tax breaks?

Tax relief is an advantage that is provided by the local government or the state of a certain category of taxpayers, puttingthem in an advantageous position compared to other taxpayers. Such benefits are considered one of the components of tax policy and pursue economic and social goals.

Types of taxes and tax incentives are of interest to many.

What are the tax benefits?

Today, there are the following types of tax incentives:

1. Withdrawals - tax incentives that remove some objects (objects) of taxation from taxation. Exemptions can be granted both to all taxpayers and to a separate category of them, for example, the sale of bakery products, bread, children's shoes and clothes, milk, medicines, etc. is not subject to taxation. In addition, such benefits can be provided on a limited or on an ongoing basis. What other types of tax benefits are there in Russia?
2. Discounts - a kind of benefits that reduce the tax base. They are divided into limited, special and general discounts. The amount of limited discounts is limited. All payers use common ones, for example, property tax deductions for personal income. Discounts are valid for certain categories of payers, for example, for disabled veterans of the Second World War. Everyone should know about the procedure and types of tax benefits.
3. Tax credits are benefits that reduce your tax salary or tax rate. There are such forms of granting a tax credit: reduction of the tax rate; installment or deferment of the paid tax; gross tax deduction; refund of previously paid tax or part of it (tax amnesty); investment (target)tax credit; tax credit.

Total tax exemption for a specific period of time is called a tax holiday.

We continue to analyze the concept and types of tax benefits.

Features of VAT benefits

The most commonly used transaction benefits include:

• brokering operations;
• sale of medical services and goods;
• sale of goods by disabled people's organizations;
• loans;
• sale of educational services.

The Tax Code establishes that tax exemption does not apply to entrepreneurial activities in the interests of another person on the basis of an agency agreement, agency agreements and commission agreements. In other words, intermediaries selling preferential services and goods must pay VAT on the amount of remuneration.

Let's consider the types of tax benefits for VAT.

Exceptions

The following transactions are exceptions:

• provision of premises for rent to foreign citizens or institutions accredited in the Russian Federation;
• sale of medical products according to a special list;
• provision of various funeral services;
• selling handicrafts of artistic merit.

Thus, neither manufacturers nor intermediaries pay VAT on the sale of these services and goods.

The Code regulates that transactions on the sale of goods that are produced are not subject to VAT.organizations of the disabled, among at least 80% of the members are disabled people and their representatives. Also, transactions for the sale of services and goods by firms whose authorized capital consists of contributions from organizations of persons with disabilities are not subject to VAT, but here it is necessary to take into account some conditions prescribed by law. Organizations whose property owners are organizations of the disabled are also exempt from paying VAT.

Do not impose VAT on the sale of medical products of Russian and foreign production according to the list, which is regulated by the Government of the Russian Federation. Organizations and individual entrepreneurs who sell goods specified in the List can use such a privilege, however, they must have a license. You cannot opt out of this benefit. Entrepreneurs and firms selling medical products not named in the List pay this tax at a rate of 18%.

VAT is not subject to the sale of services in the educational sphere for educational organizations of a non-profit type of educational and production or educational process. You can get a VAT deduction only when such services are provided in the areas of additional and basic education, confirmed by a license. Lessons with underage children in sections, circles and maintenance of children in preschool institutions are also not taxed.

VAT-free transactions for the provision of financial loans, as well as the provision of services for their provision. It is known that a loan can be provided in kind or in cash. Licensesthis is not required. If the organization provides loans in cash, it can use this benefit. At the same time, neither the loan amount nor the interest received under the agreement is subject to VAT.

The types of tax breaks don't stop there.

Tax deductions: what is it

Types of tax credits include deductions.

This is a certain amount of income that is not taxed, or a part of the previously paid income tax is returned due to expenses incurred by category, which includes, for example, the cost of purchasing housing, medical treatment, education, buying medicines, etc..

Why does the state need this?

By providing tax deductions, the state encourages people to work officially, and at the same time redirects their secondary funds to education, construction and he althcare. In addition, there are deductions for all citizens who participated in certain events or have children.

The tax deduction is provided only subject to certain conditions established by law. For each type of deduction, a list of documents is provided. There are also various restrictions.

Varieties of tax deductions

Deductions, which are enshrined in tax legislation, are divided into the following types:

• social;
• standard;
• professional;
• investment;
• property.

Standard deduction as a type of tax benefits of the Tax Code of the Russian Federationcharacterized by the fact that every month a certain amount of income is not taxed. It is provided to the taxpayer for participation in certain events (military operations) and for the child. Unlike other types of deductions, this one is issued by the employer, although it can be received through the tax authority.

Social tax deduction - partial reimbursement of medical expenses and education. All deductions in this category are annually provided with 120,000 rubles of benefits - that is, this amount of income will not be taxed.

What other types of tax benefits are there in the Tax Code?

There is also a deduction for paid education services. The Tax Code provides for the grounds for issuing such a deduction:

• own learning;
• education of a child under 24;
• education of the ward until the age of 24.

Property deductions

Property deduction is provided for certain actions performed with property. Unlike the social type of deductions unused in the current year, property deductions can be carried over to the next year. You can return 13% of the amount of the expense for the following actions:

• sale of items of property;
• acquisition of a house, room, apartment, plot of land, etc.;
• mortgage deduction.

An investment deduction can be received on income from sold securities, on the amount of funds deposited in IIA for three years and a deduction on income received from transactions with securitiespapers.

We looked at the types of taxes and tax incentives.