Kinds of Taxes

The two basic kinds of taxes are excise taxes and property taxes.

Excise Tax. An excise tax is directly imposed by the law-making body of a government on merchandise, products, or certain types of transactions, including carrying on a profession or business, obtaining a license, or transferring property. It is a fixed and absolute charge that does not depend upon the taxpayer's financial status or the value that the taxed property has to the taxpayer.

An estate tax is a tax that is placed on, and paid by, the estate of a decedent prior to the distribution of the property among the heirs in exchange for the privilege of transferring the property. Individuals who inherit property may be required to pay an inheritance tax on the value of the particular property received. Gift taxes are incurred by an individual who gives another a valuable gift.

Another type of excise tax is a sales tax, which is placed on certain goods and services. Precisely what goods and services are taxed is determined by the individual state legislatures. In some instances, a sales tax placed upon expensive items that are considered luxuries is known as a luxury tax.

A corporate tax is an excise tax imposed upon the privilege of conducting

business in the corporate capacity, which provides certain advantages to individuals, such as limited liability. It is measured by the income of the corporation involved. Other common examples of excise taxes are those imposed upon the processing of meat, tobacco, cheese, and sugar.

Value added tax. The value added tax rate is 12% and applies to sales turnover in Kazakhstan and to imports of goods and services to Kazakhstan. The turnover threshold for registering as a value added tax payer is KZT 38,190,000 or, approximately EUR 195,000. Export of goods is subject to 0% value added tax rate.

Personal income tax is 10% for residents and 15% for non-residents.

Social tax. The social tax rate is paid by legal entities and amounts to 11% of salaries and in-kind benefits of employees.

Branch profit tax. A branch profit tax of 15% has to be paid on the net income after corporate income tax of permanent establishments of foreign legal entities operating in Kazakhstan.

Property Tax. A property tax takes the taxpayer's wealth into account, as represented by the taxpayer's income or the property he or she owns. Income Tax, for example, is a property tax that is assessed and levied upon the taxpayer's income; property taxes are imposed mainly on real property. Property tax applies only to the buildings and the tax rate is 1,5% for legal entities

Direct and Indirect Taxes. Taxes are also classified as direct and indirect. A direct tax is one that is assessed upon the property, business, or income of the individual who is to pay the tax. Conversely indirect taxes are taxes that are levied upon commodities before they reach the consumer who ultimately pays the taxes as part of the market price of the commodity. A common example of an indirect tax is a value-added tax, which is paid on the value added to the product at each stage of production, distribution, and sales.

Дата добавления: 2014-10-17