Main types of tax systems

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

The treasury of absolutely any state unconditionally needs the process of its systematic replenishment, while everyone knows that most of these injections are made by the fiscal obligations of business entities. Today we will talk about the complex tax mechanism that regulates this activity.

The essence of taxation

Before we begin to consider the types of tax systems, we need to understand for ourselves the direct essence of the fiscal activity of any state. The fact is that the policy of burdening the obligations of business entities has a rather complex structure and an impressive legal background.

And this is not surprising, because taxation is such a financial instrument that forms the basis of economic relations of any country, both developed and on the way of its formation. So, the fiscal burden is a certain share of material assets, which is withdrawn from the owner in favor of the state. It fulfillsmandatory and regulatory functions and is an integral part in replenishing the budget treasury. The latter, in turn, performs the function of a regulator of economic processes of national importance.

Varieties of fiscal burden

The policy of imposing obligations is complex and multi-level, therefore the tax system of the Russian Federation (the types of taxes of which number about several dozen) is classified according to a number of features. By level of fiscal policy implementation:

• nationwide (federal) burden: distributed throughout the Russian Federation and is mandatory in any region;
• regional: regulated by the Tax Code and differs in rates and terms of taxation depending on territorial features;
• local burden: is a tool for replenishing the budget treasury of a local nature.

Also, the tax is divided depending on the purpose of its implementation and happens:

• abstract (implemented on a general legal basis);
• special (introduced to replenish the state treasury for certain, clearly defined purposes).

Structure of the tax system

Each state has distinctive characteristics in its fiscal policy, so the types of tax systems around the world vary significantly. At the same time, there are countries that manage to replenish their budget treasury in a very sophisticated, at first glance, way. It all depends on many subtleties, including historical circumstances.

The tax system in its most banal sense is a set of legal acts that regulate the procedure, scope and structure of the imposition of the fiscal burden, as well as a list of measures and pen alties for non-compliance. All this in its interaction is a huge mechanism that forms the basis of the economic relations of any state.

Principles of formation of fiscal systems

Types of tax systems vary depending on the peculiarities of the country's domestic policy. Under the concept of principle in this case, the main provisions and ideas that can regulate the fiscal activity of the government are laid down. In the tax system, they are divided into economic, organizational and legal.

Equality, justice, transparency, absence of infringement of any kind, expediency and, most importantly, convenience can be attributed to the first. And this means that the tax policy applies to all payers equally, regardless of their status and position in society. At the same time, everyone understands perfectly well what he pays to the budget for and in what amounts these funds are charged from him.

The Organizational Principles cover the timeliness and periodic framework for fulfilling commitments to the State. Legal regulated by regulatoryacts.

The role of the tax system in the state

Despite their individuality, the main types of tax systems perform the same functions around the world:

1. This element of economic activity is primarily a well-coordinated mechanism of interaction between government organizations and a business entity (in certain cases, an individual).
2. At the same time, different types of the tax system of the state equally determine the role of the bearer of obligations to the budget: they are the most important element in the formation of the budget treasury.
3. The economic function of the fiscal mechanism is to regulate the internal financial flows of the country, which determine the overall welfare of society.
4. And the final investment function involves taking care of the future of the state through the implementation of a competent fiscal policy.

Fiscal collection system in the Russian Federation

It is rather difficult to analyze the budgetary policy of our country. If only because it seemed to the state that more than two decades were not enough to establish a clear mechanism for imposing and paying obligations, therefore the types of tax systems in the Russian Federation have changed several times already.

Today, we can say that the procedure for replenishing our budget lacks a powerful and clear regulator, although there is still a potential for this. As for the latter, it is laid down in well-developed regulatory legal acts,availability of benefits and an individual approach to payers. And they could function successfully, but this does not happen due to the presence of a complex administrative system in the state and an overestimated level of bureaucracy.

The tax system, the main types of taxes in the US

The government of the United States for many centuries successfully adheres to the policy of liberalization, which formed the basis of market relations in the state. And this means that the mechanism of the tax system in this country has been successfully established and functions literally like clockwork.

Thanks to the high level of benefits, as well as a loyal attitude towards the depreciation of fixed assets (which can reduce profits), investment processes in the budget treasury are clearly established.

In the course of doing business, Americans are liable for a set of basic taxes:

• fiscal tax on sales;
• income liabilities;
• social security fees;
• local business burden (applies to each state individually).

Types of tax systems in Europe

The Western European fiscal policy mechanism is qualitatively different from generally accepted world practices. At least in that he is too conservative in relation to the carriers of tax obligations.

For example, in France there are no tax holidays and all kinds of benefits, but at the same time the government is loyal to the use of accelerated rates by business entitiesdepreciation. The reduced rate of the fiscal burden applies to those enterprises that resort to scientific activities in the course of their operations.

But the German tax policy is characterized by increased interest on liabilities. Sometimes income tax can reach 50% for certain types of activities. At the same time, pen alties for non-compliance with regulations reach simply sky-high levels. However, the European mentality is such that this does not frighten local entrepreneurs at all, so the mechanism for replenishing the treasury is brilliantly adjusted.