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Taxation & Its Principles. Types of Taxes - Coggle Diagram
Taxation & Its Principles. Types of Taxes
Essence of Taxation
Definition of taxes
Taxes are mandatory payments established by the highest legislative body that individuals and legal entities pay to the budget in the amounts and within the terms stipulated by law.
Purpose of taxation
Economic regulation
Income redistribution
Budget funding
Social justice
Principles of Taxation
Principle of fairness
Principle of efficiency
Benefit principle
Principle of simplicity and transparency
Ability-to-pay principle
Principle of stability
Tax Classification
By collection method
Indirect taxes
Excise duties
Customs duties (tariffs)
VAT (Value-Added Tax)
Sales tax
Direct taxes
Corporate income tax
Property tax
Personal income tax (PIT)
Land tax
By rate structure
Proportional (same rate for everyone)
Regressive (lower income = higher proportion)
Progressive (higher income = higher rate)
Special Taxes / Tax Incentives
Tax benefits for education
Investment tax credits
Environmental taxes
Functions of Taxes
Stimulating function
Regulatory function
Redistributive function
Social function
Fiscal function