Tax definition

Tax definition

Tax is a mandatory financial contribution that is levied on activities, activities, jobs, and private income in individuals and enterprises, and is also known as a kind of financial return, and is imposed by the state government on a range of sectors, including businesses, such as services and goods.

Another tax tariff is money imposed by governments in order to obtain financial support for the services it provides, and the tax is considered a type of liability for people and businesses, usually a percentage of the money, and is predetermined.

Tax properties

The tax is generally characterized by a range of characteristics, the most important of which are:
Public: Taxes are imposed on public items that are often dependent on consumption, such as access to services, the purchase of goods, or the ordering of products imported from outside the country.
Often indirect: The value of the tax is taxed on the sale or service, which is later collected from the final acquisition, and is referred to as the buyer or customer according to the nature of the products sold.
Effective control: Tax control helps to activate the ability to collect it from the value of consumer operations that do not include any unpaid funds, or funds classified as savings.

Types of tax
The tax is divided into a variety of types:

  • Capital return tax: A type of tax on profits, manifested as a result of the sale of property, such as land, deeds, real estate, shares, etc., and the return tax is considered similar to income tax in some countries, and is divided into two types:
  • Short-term return tax: Is the tax return that is treated as a normal income tax.
  • Long-term return tax: is the tax return that is treated as capital tax.
  • VAT: A tax imposed by the government at the state on the stages of the production of services or goods, paid by companies that manufacture goods or provide services during the process of converting them from primary to final products, and the ratio of this tax is based on the value of Materials added during the production process, such as the addition of workers' wages.
  • Sales tax: A tax applied during product sales, calculated on the basis of the use of a percentage charged on the sale price, is linked to the consumption and service capacity, and is collected by the product or seller.
  • Property tax: A tax levied on property owners of buildings and land, and any other type of property that is considered to be subject to property tax, and the proceeds of this tax are used to support and finance many public sectors, such as education and civil defense. And the construction of public facilities.
  • Income tax: A tax imposed by state governments on financial income, which is considered a legal tax, which is deducted by law from the total value of income of individuals and enterprises, and is a private financial source of financing in support of public services provided to people.
  • Duty tax: A tax for products imported from abroad, used to follow up on trade processes, and raises the prices of all imported goods, resulting in an increase in their cost to buyers, and the fees are levied according to customs fees. For a predetermined tax rate, it is one of the most severe financial charges.

Principles of taxation

  • Taxing individuals in any country depends on a set of principles:
  • Contributing to government support: by participating in the provision of funds that correspond to their respective capacities, thereby increasing the proportion of government financial revenues.
  • The stability of the value of each tax: Individuals have to pay a certain amount of money, and the government must determine the value of the tax payment.
  • Choose the best ways to collect taxes: The method of completion must be one of the convenient ways to contribute to payment easily, and a specific time to pay taxes must be set.
  • Estimating the overall financial situation of society: people's financial capacities must be taken into account, such as low-income people, so the impact of tax on individual income should be small.

Tax date

The tax is generally linked to a long history: taxes appeared in ancient Roman and Greek communities, were part of the amounts imposed on imported goods and gold-related revenues, and were used as a means of raising money to support wars, as well as the first forms of taxes that emerged. In Rome, it was a direct consumer, customs and tax that citizens must pay, and the taxes were widespread in ancient Egypt and Persia. In the Middle Ages, various taxes emerged, including services and indirect taxes.

The tax is one of the main financial themes, and has seen great controversy throughout history even before it was adopted as part of the national income, as it was associated with the political realities of countries in the past centuries, and the French Revolution of 1789 is an example of the special controversy in taxation. France is unfair in the distribution of tax. Currently, the tax system is one of the most important influences on public internal policy in all countries.


The tax is provided by financial terms that are part of public finance, as they are paid by all individuals to the state government, and the taxes help finance public development and cultural projects, which contribute to the provision of many services to individuals in the community. The tax is divided into a set of types for each type of financial competence, and helps to provide financial returns estimated at an estimated value of the total amount of money associated with the tax, and the taxation depends on a set of basic principles, and it is important to work on them until a value is collected. The tax is right.