Taxes And Its Types

Tax is the amount of money that you have to pay to the government as a duty of a responsible citizen. There are different kinds of taxes that you have to pay every year.

Income tax

As the name says for itself, income tax is the amount of money that you have to give to the government on behalf of your income. The more you earn money, the more tax you are supposed to pay. This is the tax that you must give if you are earning high. In order to pay this tax, you have to attach all kinds of receipts and the details of earning as well. If you own some kind of property and you are earning money in the form of rent, you have to give its details as well.

Sales tax

Sales tax is the tax which you have to pay if you are doing business of goods. If you have a business of selling goods and other materials, this is a tax you have to pay too. Different countries have different tax rate on the goods. It all depends upon the economy of the country. If a country is well developed, there is a huge chance that you might not have to pay it, but in most cases, people who are doing some kind of business have to pay this tax.

Property tax

Property tax is the amount of tax that you have to give if you own any kind of property. If you are earning a lot of money by renting your property, there are two kinds of taxes that you must have to pay, property tax and income tax as well. There are many people who do not pay their taxes and as a result, other people have to pay extra taxes every year.

Hotel tax

Hotel tax is the amount of money that you have to pay if you own a hotel. This is a tax that you have to pay along with the property tax. This tax is also known as occupancy tax, lodging tax or room tax as well. The rules of this tax vary from city to city and country to country.

Tariff

The tariff is one of the common names that you might have heard in international dealing of goods. It is a tax that you have to pay if you are selling your products internationally. In other words, it is an international tax. So if you are planning to do any kind of import or export, you should get to know about Tariff properly.

R and D tax

R and D tax is the amount of money that you have to pay in the form of tax. Abbreviation of research and development, R and D Tax Credits is the tax that you have to pay if you are innovating something new. If you own a company and you want to create something new, the important thing that you need to take care about is R and D tax.

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