Elements of the tax are a set of principles, terms and rules, regulated by the norms of legislative acts. The tax itself is a payment levied by the state authorized bodies to the budget and extra-budgetary funds to improve the welfare of the population and the maintenance of the administrative apparatus.
The full establishment of tax is carried out only after determining its main elements and categories of persons obligated to pay. Do not forget about the establishment of a separate group of legal entities and individuals who can count on discounts or benefits.
Elements of tax and their characteristics:
- Base (the foundation on the basis of which the amount of tax is calculated).
- Rate (interest calculated on the selected base).
- Period (time during which the established rate and tax base are valid).
- Object (what tax is paid from).
- Subject (the one who is obliged to pay it).
- Term (period for which payment must be made).
An object should be understood as a certain property or product, a specific amount of income or profit, and another item of value or material content. Current legislation provides for a list of objects that are taxed. In our country, such a document is the Tax Code of the Russian Federation , or the Tax Code of the Russian Federation.
Such elements of tax, such as the rate, allow the payer to independently take into account the amount required to be paid, based on the income received or available property. Simply put, this is a state-established share or percentage of profits. Bets can be of several types:
- proportional;
- solid;
- regressive;
- progressive.
The former suggest the same taxation without prior separation by income. Solid tax interest rates imply a certain amount of interest per unit of measure of goods, for example, per ton of gas. The progressive rate protects the unprotected segments of the population, as it rises with rising profits. That is, the more income the taxpayer receives, the greater part of it has to be given in favor of the state. The opposite effect is the regressive interest rate of the tax, since higher income leads to lower rates. Thus, the state stimulates the growth of productivity and efficiency of certain industries.
But this is not all the elements of tax prescribed by law. The tax code contains the basic schemes and principles of the formation of the base and is an instrument of regulation of the respectively authorized services at the federal and local levels. The foundation for establishing the base in this reporting period is the information of the financial statements of each taxpayer. If during the verification of the legal entity some distortions or even errors were found, it is necessary to recalculate the tax deductions and apply to the tax service with the corrected documents if the payment has already been made. If, according to the recount of data, a surplus of payment is revealed, it can, at the request of the taxpayer, either go to the account of the next period, or (which is less common) go to the bank account.
Elements of tax include the period, that is, the period during which the established base and tax rate are valid. As a rule, a calendar year is selected as a period. When an enterprise is registered as a legal entity, and therefore as a taxpayer, the tax period is calculated from the moment of registration until the end of the year.
The above components are elements of the legal composition of the tax. In general terms, they are all aimed at regulating the process and the system of paying tax payments. And if we talk about strategic goals, the most important is the maintenance and improvement of the welfare of citizens and the country as a whole.