Most of the income forecast by the Government in its budgets comes from the taxes it collects. The main purpose of taxes is to provide the Government with the economic resources it needs to offer the services required by society.
A distinction can be drawn between two types of tax, depending on whether or not the taxpayers receive something in return for the money they pay:
When a public institution offers someone a service that provides them with goods or services directly, they are said to be paying a rate. Some examples: rates for refuse collection, rates for use of sports complexes, rates for enrolment in the public university...
Taxes are paid to the government by taxpayers without directly receiving anything in return.
Taxes can also be classified by how much the percentage varies depending on the income; so for example:
There are two types of tax: Direct Taxes and Indirect Taxes.
These taxes are paid directly by individuals or companies under any of the following circumstances:
Among these, the most important are:
These taxes are applied to people's income or assets, the consumption of certain services and transfers and/or changes in ownership in certain goods (wealth circulation or use). Among these, the most important are: