The Various Types of International Tax Available Today
can be sourced from various categories. Some of them includes the personal income, royalties, businesses and property rentals. Depending on these taxed base areas, the level of the sources can be grouped into four distinct classes. The class categories each source according to it mode of tax and where they apply. These four basic tax methods are the source of the government income which is used in various objectives for bettering the country. The four types of imposed today are discussed below.
Consumption tax or rather sales tax. This is whereby the taxes are financed from the income of the individual. Sales income are fair to their customers since they target the level of money an individual gets. There is a difference in the level of that a certain person from specific ranks gets. In other words, it taxes people from the top most to the lowest paid with difference in their salary. On the case where business individuals are taxed, the level is same for both people who purchase goods in large and lower quantity. This makes many people to feel that they are hard pressed since consideration ought to be effected.
The value added tax. There is a slight difference in this type of tax from sales in the sense that the final consumer is the one entitled to the payment. With value added tax, the goods and services art axe at each stage of production. However, make travels from one country to the other, the values added tax is usually provided for every service provided.
Excise taxes. Several consumption of different commodities are usually affected by this type of tax. They include the consumption of fuels on the way, cigarettes, alcohol among others. Excise tax is a major source of income internationally since many people who are liable to it usually have an addition habit. For example, it is not easy for a cigarette addict to stop usage under any circumstance of price increase. Excise tax are thus important since they generate a lot of cash that cannot be received from other sectors of operation.
Estate taxes. This kind of tax occurs when there is wealth transfer from one individual to the other. In most cases, the estate tax is imposed to the people who have been left by their loved one through death. Transferring of such document to the next of kin require legal process. Such processes are taxed hence the estate tax method. Estate tax can be based according to the wealth that was left behind. It is also a good form of government income and can it collection is easy. Such taxes are the main source of government income which are legally and widely use internationally.