TYPES OF TAXATION

What Is Taxation?

Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents. Paying taxes to governments or officials has been a mainstay of civilization since ancient times.

1.    Income tax: Governments impose income taxes on financial income generated by all entities within their jurisdiction, including individuals and businesses.

2. Corporate tax: This type of tax is imposed on the profit of a business.

3. Capital gains: A tax on capital gains is imposed on any capital gains or profits made by people or businesses from the sale of certain assets including stocks, bonds, or real estate.

4. Property tax: A property tax is asses by a local government and paid for by the owner of a property. This tax is calculated based on property and land values.

5. Inheritance: A type of tax levied on individuals who inherit the estate of a deceased person.

6. Sales tax: A consumption tax imposed by a government on the sale of goods and services. This can take the form of a value-added tax (VAT), a goods and services tax (GST), a state or provincial sales tax, or an excise tax.

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