In the article, we consider the types of taxes and tax benefits.
A tax is a mandatory payment that is levied by public authorities at various levels from individuals and organizations in order to financially support state 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 actions, for considering cases in courts, records of acts of civil status, etc.).
We describe the types of taxes and tax benefits in more detail.
Taxes appeared with the emergence of the state, they constitute the main source of its income. They are classified according to the following criteria.
By collection method: direct and indirect
Direct are levied on property or income of the taxpayer (legal entities or individuals). Direct taxes include: income tax, income tax on legal agents, mineral extraction tax, transport tax, property tax on individuals and organizations. A feature of such taxes is that the same person is the taxpayer and taxpayer. Indirect taxes are levied on services and goods, included in the cost of production, they are paid by consumers. Indirect taxes include: excise taxes on specific types of goods (cigarettes, petroleum products, alcohol, cars), customs duties, value added tax. The peculiarity of indirect taxes is that various agents are a taxpayer and a taxpayer. In this case, the taxpayer is the buyer of the service or product (the tax is paid by him at the time of purchase), and the taxpayer is the company that produced the service or product (the tax is paid by it in favor of the state).
By features of tax rates
Proportional, progressive and regressive. Progressive - these are taxes whose rates increase as the size of the object on which they are imposed increases. Such a system maximizes the redistribution of income, since more affluent citizens pay in the form of taxes the bulk of their income than people who are less well off. Proportional - these are taxes whose rates are constant regardless of the size of the object. The most striking example of proportional tax in Russia is corporate income tax. Regressive taxes are those whose rates decrease as taxable items increase. The use of the regressive system pursues mainly the goal of withdrawing the income of wealthy citizens "from the shadows."
By tax system level
At the level of the tax system, taxes are allocated regional, federal and local. Federal are required to pay throughout the country. This category includes value added tax, personal income tax, excise taxes, 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 constituent entities of the Russian Federation; they are mandatory for payment only on the territory of such constituent entities. The category of regional taxes currently includes transport tax, property tax 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 representative bodies of municipal level entities; they are mandatory 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 credits?
A tax benefit is an advantage that is provided by a local government or a state of a certain category of tax payers, putting them 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.
The types of taxes and tax benefits are of interest to many.
What are the tax breaks?
Today, there are the following types of tax benefits:
- Exemptions - tax benefits that deduct some objects (objects) of taxation from taxation. Exemptions can be granted to all taxpayers, as well as to their separate categories, for example, sales of bakery products, bread, children's shoes and clothes, milk, medicines, etc. are not taxed. In addition, such benefits can be provided on a limited or permanently. What other types of tax benefits are there in the Russian Federation?
- Discounts - a kind of benefits that reduce the tax base. They are divided into limited, special and general discounts. Limited discounts are limited. Common are all payers, for example, tax property deductions for personal income. Discounts are valid for certain categories of payers, for example, for disabled WWII. Everyone should know about the procedure and types of tax benefits.
- Tax credits - benefits that reduce the tax salary or tax rate. There are such forms of tax credit: tax rate reduction; Installment or deferral of tax paid; deduction from gross tax; refund of previously paid tax or part thereof (tax amnesty); investment (target) tax credit; offset of tax paid.
A full 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 benefits for transactions that are used most often include:
- mediation operations;
- sales of medical services and goods;
- the sale of goods by organizations of persons with disabilities;
- issuance of loans;
- the implementation of educational services.
The Tax Code establishes that tax exemption is not applied in entrepreneurial activities in the interests of another person on the basis of a contract of agency, agency agreements and commission agreements. In other words, intermediaries selling preferential services and goods must pay VAT on remuneration.
Consider the types of tax benefits for VAT.
Exceptions
The following operations are an exception:
- leasing of premises to foreign citizens or institutions accredited in the Russian Federation;
- sale of medical goods on a special list;
- the provision of a variety of funeral services;
- sale of handicrafts of artistic merit.
Thus, when selling these services and goods, neither producers nor intermediaries pay VAT.
The Code states that VAT is not imposed on the sale of goods that are produced by organizations of persons with disabilities, among at least 80% of the members are persons with disabilities and their representatives. Also, VAT is not imposed on the sale of services and goods by firms whose authorized capital consists of contributions from organizations of persons with disabilities, however, some conditions prescribed in the law must be taken into account here. Organizations whose property owners are organizations of persons with disabilities are also exempt from VAT.
Sales of medical goods of Russian and foreign production are not subject to VAT according to the list, which is regulated by the Government of the Russian Federation. This privilege can be used by organizations and individual entrepreneurs who sell goods specified in the List, but they must have a license. You can’t refuse to use this benefit. Entrepreneurs and firms selling medical products not listed in the List pay this tax at a rate of 18%.
VAT is not imposed on the sale of services in the educational sector for educational organizations to conduct a non-commercial type of training-production or educational process. You can only receive VAT deduction when similar services are provided in areas of additional and basic education, confirmed by a license. Lessons are also not taxed for minor children in sections, circles and the maintenance of children in preschool institutions.
Operations for the provision of financial loans, as well as the provision of services for their provision, are not subject to VAT. It is known that a loan can be provided in kind or in cash. No license is required for this. 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 contract is subject to VAT.
Types of tax benefits for taxes do not end there.
Tax deductions: what is it
The types of tax benefits deductions are.
This is a certain amount of income that is not taxed, or a portion of the income tax paid earlier is paid due to expenses incurred in categories, which include, for example, expenses for the purchase of housing, treatment, tuition, purchase of medicines, etc.
Why is this for the state?
By providing tax deductions, the state encourages people to work officially, and at the same time redirects their secondary funds to education, construction and healthcare. In addition, there are deductions for all citizens who participated in certain events or who have children.
A tax deduction is granted only subject to certain conditions established by law. A list of documents is provided for each type of deduction. There are various limitations.
Varieties of tax deductions
The deductions that are enshrined in tax legislation are divided into the following types:
- social;
- standard;
- professional;
- investment;
- property.
The standard deduction as a type of tax benefit of the Tax Code of the Russian Federation is characterized by the fact that every month a certain amount of income is not taxed. It is provided to the taxpayer for participating in certain events (military operations) and per child. Unlike other types of deductions, this is drawn up by the employer, although you can get it through the tax authority.
Social tax deduction is a partial reimbursement of medical and educational expenses. All deductions of this category are annually granted 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 grounds for processing such a deduction:
- own training;
- education of a child up to 24 years old;
- training of a guardian up to 24 years.
Property Deductions
The property deduction is granted for certain actions performed with the property. Unlike the social type of deductions unused in the current year, property deductions can be carried forward to the next year. You can return 13% of the expense for such actions:
- sale of property items;
- the acquisition of a house, room, apartment, plot of land, etc .;
- mortgage deduction.
An investment deduction can be received on income from securities sold, from the amount of funds deposited on the IIS for three years and a deduction from income received from transactions with securities.
We examined the types of taxes and tax benefits.