What You Need To Know About Taxes

In principle, we must know that taxes are the money that people and companies must pay to the State in order to contribute to its maintenance and thus be able to meet public needs. In other words, this is the main way in which the State gets the resources it needs to carry out its activities and all those functions related to public administration, security, social investment, infrastructure, health, education, among others. In dallolawgroup.com you can find helpful information about this.

Therefore, for the State to be able to build schools, a road, houses or hospitals, it needs financing and resources, so, they are the people who achieve with the payment of their taxes, the financing of these works. But taxes can be classified by means of different typologies, but the most common is the classification of direct and indirect taxes.

And we have that the direct taxes, are that type of taxes that the company, society or person has to pay directly by the patrimony or the income. We have examples of this type of tax:

  • Wealth tax.
  • Income tax.
  • Wealth tax (property, vehicles, house, buildings, etc).
  • Income tax.

In addition to these examples there are many more. These taxes are called direct taxes because they are collected and applied directly from companies or individuals who reach a limit that is established by the state for taxation.

While indirect taxes are those in which the company, person or corporation cancels indirectly through the purchase of goods, payments for services and any transactions carried out with these. This means that all persons or companies pay the State indirect taxes when they purchase food, eat in a restaurant, buy a television, buy clothes, or use a telephone service, among others. A very common case of this type of tax is the VAT, which means value added tax.

So in the particular case between these two types of taxes, the difference is that in the direct tax is only paid by those companies or individuals who reach the limit of equity or generate sufficient income to tax, so that not everyone is obliged to cancel it, while the indirect tax should be canceled by anyone who is in the need to dress, eat, or have fun.

Another classification that can be made of taxes as well, is:

– Expenditure taxes, which consist of a transaction of buying and selling some good or service, or also the importation of goods from other countries are examples of expenditure taxes.

– Income tax, which is generated directly to the person or company that receives money or payments in consideration of an economic activity carried out.

– Property taxes, examples of this type of tax are property tax and vehicle tax, that is, these taxes are generated by the ownership of houses, farms, buildings, land, inheritance, among others.

So if you have doubts about how they work and what the purpose of the taxes is, it is best to go to the experts, and you can find them at dallolawgroup.com.