Tax

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11+ Sample Profit and Loss Statements to Calculate your Business Expenses

It is always wise to account for the revenues and expenses in a business. This way, the business is able...

September 6, 2023

What are Taxes?

To keep society up and running, each of its members must contribute a portion of what they make for each other’s benefit. Taxes, or the amount that we owe to society enables us to maintain and build infrastructures to support the delicate nature of social balance and prevent it from tipping over.

Types of Taxes

Taxes maintain the infrastructures that support our society. From economic, political, and social activities, taxes ensure that these pillars keep society from falling apart and plunging into chaos. Taxes come in different kinds, and listed below are its two major types.

• Direct Tax: Taxes imposed on income and profits by businesses and individuals are called direct taxes. Direct tax is the most noticeable type of tax. Income taxes paid by working individuals to corporate taxes levied from their annual profits; these are among the common examples of direct taxes. Aside from that, direct taxes are also imposed on properties such as houses and parcels of land.

• Indirect Tax: Value-added taxes and excise taxes imposed on prime and essential commodities and services are called indirect taxes. These taxes are barely felt by every one of us since it is added directly according to the value of goods and services. Also, indirect taxes do not discriminate between the origins of which a commodity comes from as it applies to imports, and sometimes to exports as well.

Pick From Our Wide Selection Of Tax Templates

Taxes maintain the bonds that hold society together. That is why we, as its members, are required to pay it on a specific period every year. Taxes are paid for each member’s benefit. And for us to continue enjoying these benefits, paying the right amount of tax with the use of a comprehensive and well laid out Tax Templates will come with relative ease.