A case Study about A case Study about Types of Taxes Types of Taxes Prepared & Designed by : Prepared & Designed by : Yousef Lubbad Yousef Lubbad University of Palestine Faculty of Business Administration and Finance Accounting Department

Types of Taxes 1.Direct & Indirect taxes: Direct taxes: Are those taxes where the taxpayer is the one who bears the burden of the tax and cannot pass the burden to another person. Example: Income taxes, Salaries Tax. Indirect taxes: Are those taxes that the taxpayer can pass the burden of the tax to someone else. Example : Sales Tax.

Types of Taxes 2.Proportional & Progressive taxes: Proportional taxes: Are those taxes imposed at a fixed rate on the taxable amount regardless of it’s value. Progressive taxes: Are those taxes that their rates escalates with the increase in taxable amount and decreases when the taxable amount decrease.

Types of Taxes 3.Personal & In-kind taxes: Personal taxes: Are those taxes that consider the taxpayers capability and allows him exemptions (minimum family charge allowance). In-kind taxes: Are those taxes that the taxpayers’ personal circumstances are not considered (No personal allowance).

4.Qualitative & Unified taxes: Qualitative taxes: This system imposes the tax on each kind of revenue separately. Unified taxes: This system imposes the tax on the consolidation of different revenues of the taxpayer at unified rates.

Types of Taxes Income taxes: An income tax is a tax levied on the financial income of people, corporations, or other legal entities. Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs).

Value added Tax (VAT) : Value added tax (VAT), or goods and services tax (GST), is a consumption tax levied on value added. In contrast to sales tax, VAT is neutral with respect to the number of passages that there are between the producer and the final consumer; where sales tax is levied on total value at each stage Value added tax (VAT), or goods and services tax (GST), is a consumption tax levied on value added. In contrast to sales tax, VAT is neutral with respect to the number of passages that there are between the producer and the final consumer; where sales tax is levied on total value at each stage

sales tax A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax is usually set as a percentage by the government charging the tax. There is usually a list of exemptions. The tax can be included in the price (tax-inclusive) or added at the point of sale (tax-exclusive).

sales tax Most sales taxes are collected by the seller, who pays the tax over to the government which charges the tax. The economic burden of the tax usually falls on the purchaser, but in some circumstances may fall on the seller. Sales taxes are commonly charged on sales of goods, but many sales taxes are also charged on sales of services. Ideally, a sales tax is fair, has a high compliance rate, is difficult to avoid, is charged exactly once on any one item, and is simple to calculate and simple to collect.

Taxation in the United States Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. United States taxation includes local government, possibly including one or more of municipal, township, district and county governments. It also includes regional entities such as school and utility, and transit districts as well as including state and federal government. Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. United States taxation includes local government, possibly including one or more of municipal, township, district and county governments. It also includes regional entities such as school and utility, and transit districts as well as including state and federal government.

Taxes Types in the United States Tax deductions/credits Tax deductions/credits Tax deductions/credits Tax deductions/credits Methods of calculation Methods of calculation Methods of calculation Methods of calculation Progressive nature Progressive nature Progressive nature Progressive nature Payroll taxes Payroll taxes Payroll taxes Payroll taxes Social Security tax Social Security tax Social Security tax Social Security tax Medicare tax Medicare tax Medicare tax Medicare tax Corporate income tax Corporate income tax Corporate income tax Corporate income tax Transfer taxes Transfer taxes Transfer taxes Transfer taxes Excise taxes Excise taxes Excise taxes Excise taxes State and local government taxation State and local government taxation State and local government taxation State and local government taxation

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