Elements of taxation of individuals and legal entities

Each state has the right to establish taxes and pursue a tax policy throughout its territory. Taxes are paid in favor of the state unilaterally, free of charge, unlimited and without equivalence, that is, the amount of tax paid will never be returned, the tax is not paid for any services to the state. Taxes are collected compulsorily to ensure its activities from legal entities and individuals in a certain amount, on time and on a mandatory basis.

In order for the state to collect taxes, it is necessary that the law should have an idea of who will pay the tax, under what conditions the obligations, the amount of them and the procedure for payment have arisen. All this information is the elements of taxation, their characteristics are used in the regulatory and legislative documents of the state.

Elements of taxation are described in the RF Tax Code in Article 17. Three groups are distinguished among them:

1. Mandatory elements of taxation

2. Optional elements

3. Additional elements

The legislative act always contains the main elements of taxation:

1. Object of taxation

The subject of tax (taxpayer) are individuals and legal entities, residents and non-residents. The object of taxation can be goods, services, property, income, profit of the enterprise.

1. The tax base is the basis for calculating the tax. The tax rate is applied to the tax base. An example of a tax base is the volume of services sold when calculating VAT, the value of property, and the volume of raw materials in the extraction of minerals.
2. The tax period is a period of time after which the tax is calculated, the tax base and the amount to be paid are determined.
3. The tax rate is equal, solid, percentage, total, high and low. This is the amount of tax per unit of taxation.
4. The procedure and terms of payment of taxes. All taxes must come to the appropriate state budget. If the tax is received in another budget, the tax authorities are considered as a shortfall and impose a fine. The time before the expiration of the period of which the taxpayer contributes completely tax to the budget is particularly important. All taxes have definite terms of payment, after which a penalty is charged.
5. The procedure for calculating taxes is established by legislative acts. Conditionally, five stages are distinguished: the object of taxation is recorded, the tax base, the tax rate is determined, the order of application of the rate is taken into account and the tax is calculated.

Optional or optional elements of taxation are benefits, liability for tax violations, penalties, procedure for the return of incorrectly withheld amounts of tax. Privileges are granted in the legislative order to certain categories of taxpayers, either fully or partially exempting them from paying taxes.

Additional elements of taxation are not mandatory, but they are present when establishing obligations on taxes. These include:

1. The subject of tax may be a land plot, vehicle, property,

2. Unit of tax is a measure from which the tax is calculated. For example, the unit of measurement of profit tax is the monetary unit of the country, the tax on land-hectare, the tax on gasoline ton, liter.

3. An example of the scale of the tax is the turnover tax, the tax on the machine tools of the enterprise, the tax on the size of the premises.

4. The source of tax is the income of the subject. It can become wages, profits, dividends.

Despite the fact that the types, amount and structure of taxes are diverse, the elements of taxation are always universal. These are the constituent parts of the tax that determine its form, content, organization of levying of the tax and are established by the state in the legislative order.