Taxes refer to any type of fee that is charged to an individual or corporation. It is a compulsory and enforced contribution which goes to finance government expenditure. Failure to comply [url=http://www.broncosauthoritystore.com/Authentic-Jake-Butt-Broncos-Jersey/]Authentic Jake Butt Jersey[/url] , or miscalculate tax, can result in fines and even imprisonment. This article takes a look at some of the different types of taxes currently in operation.

Income Tax

Income tax is any tax on an individuals or a corporations wages or net profits. There are three main types of income tax: personal income tax, capital gains tax and corporate tax.

Personal income tax is deducted from a worker’s wage. It is usually done on a pay-as-you-earn basis, whereby money is taken from every pay packet that is received. People that are registered as self-employed may have to calculate and submit their own income taxes at the end of every tax year. There are also tax refunds or rebates [url=http://www.broncosauthoritystore.com/Authentic-Chad-Kelly-Broncos-Jersey/]Authentic Chad Kelly Jersey[/url] , which are designed to pay back money to an individual who has paid too much tax. Some countries allow you to claim back expenses, such as fuel costs, against the income tax that you owe.

Capital gains tax refers to tax that is payable when you buy and sell capital assets that have increased in value. Many countries have capital gains tax allowances, and the payable rate of capital gains tax may depend on your level of personal income.

Corporate tax is any type of tax that is charged to a corporation. Again [url=http://www.broncosauthoritystore.com/Authentic-Brendan-Langley-Broncos-Jersey/]Authentic Brendan Langley Jersey[/url] , the amount of corporate tax payable will depend on the corporation’s income bracket.

Property Tax

Property tax is a type of tax that is payable to a local government organization. It is normally used to fund and improve existing local services, such as schools, transportation systems, and road maintenance. There are three main types of property tax: land tax [url=http://www.broncosauthoritystore.com/Authentic-Carlos-Henderson-Broncos-Jersey/]Authentic Carlos Henderson Jersey[/url] , improvements to land tax, and personal property tax. Property tax is also called council tax in some countries.

Social Security Contributions

Social security contributions are a type of tax that is used to maintain and improve retirement and public healthcare systems. These contributions are mandatory, and they are usually set at a fixed amount. However, an employer has the right to change the social security contribution rate if it is being used in a pension scheme. Social security contributions are usually deducted instantly from an individual's pay packet.

Taxes on Goods and Services

Goods and services are also subject to tax. There are three main types of taxes of goods and services: value added tax (VAT) [url=http://www.broncosauthoritystore.com/Authentic-Demarcus-Walker-Broncos-Jersey/]Authentic Demarcus Walker Jersey[/url] , sales tax, and excise tax.

VAT is added onto every product that increases in value during the sale process. Essential items may have reduced VAT rates, and some are VAT exempt. In Canada, the federal sales tax is called the Goods and Services Tax (GST).

Excise taxes are not related to the value of the item being taxed [url=http://www.broncosauthoritystore.com/Authentic-Garett-Bolles-Broncos-Jersey/]Authentic Garett Bolles Jersey[/url] , instead they are based on the quantity. Excise tax is typically distributed back into a dedicated expense purpose. For example gasoline excise tax money is used to improve roads and fund other transportation infrastructures.
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