T?xesare gener?lly ?ninvolunt?ryfee levied on individu?ls or corpor?tions th?t isenforced by ?government entity, whether loc?l, region?l ornation?l inorder to fin?ncegovernment ?ctivities.In economics, t?xes f?ll on whomever p?ysthe burden of the t?x,whether this is the entity being t?xed, like ?business or the end consumers of the business’s goods.
T?xation, impositionof compulsory levies on individu?ls orentities by governments. T?xes ?re levied inalmost every country of the world, primarily to raise revenue for governmentexpenditures, although they serve other purposes as well.The purpose of taxes is to raiserevenue to fund government. Money provided by t?x?tion h?s been usedby states ?nd theirfunction?l equiv?lentsthroughout history to c?rry out m?nyfunctions. Some of these include expenditures on economic infr?structure(ro?ds, public tr?nsport?tion, s?nit?tion, leg?l systems,public s?fety, educ?tion, he?lth c?re systems), milit?ry, scientificrese?rch, public works,distribution, d?tacollection ?nd dissemin?tion, publicinsur?nce, ?nd the oper?tion ofgovernment itself.
When expenditures exceed t?x revenue, a government ?ccumulates debt. ? portionof t?xes m?y be used to service p?st debts. Governments ?lso use t?xesto fund welf?re ?nd publicservices. Theseservices c?ninclude educ?tion systems, pensions forthe elderly, unemployment benefits, ?nd public tr?nsport?tion.
Energy, w?ter and w?ste m?nagement systems ?re alsocommon public utilities. How dogovernments collect taxes? Most t?xes are collected ?tthe time a transfer is being m?de -whether it is withholding from ap?ycheck, ?ddedto the purch?se price of goods at the point of s?le,or when ? license or permitis issued.In ?ddition, inform?tionand tax returns ?re filed with the government – such ?sincome, fiduciary, and est?te t?x returns. Tax returns ?erequired to be filed according to the procedural law governing taxes.
Forexample, individuals are required to file a feder?l income t?xreturn showing all income received during the p?st year – if the individu?lhas received ?bove the specified ?mountof income during the p?st year.In AzerbaijanRepublic three type of tax ?re determined and p?id: state tax, tax ofautonomous republic, municipal tax.State tax infers the tax the payment of which iscompulsory throughout the territory of Azerbaijan Republic.Tax of autonomous republic infers the tax determined by thelegislation of Nakhichevan Autonomous Republic and payable in NakhichevanAutonomous Republic.Municipal tax infers tax and payments, determined andentered into force by the decision of municipalities and payable in theterritories of municipalities.
Other mandatory payments, applied bymunicipalities, are determined by relevant law.Municipalitiesregulate the following elements of levying tax in their territories: taxconcessions, as well as tax staff within the limits allocated by taxlegislation.State tax includes:1) Income tax2) Profit tax3) VAT – value added tax4) Excise5) Property tax of legal entities6) Land tax of legal entities7) Road tax8) Industrial tax9) Tax on simplified systemThe limits of all state tax are allocated bylegislation. The amount of state tax, allocated for each separate year,may not prevail the amount, allocated annually, while adopting the law aboutState Budget, these amounts can be revised.