Elements of tax and their characteristics

Elements of the tax are a set of principles, terms and rules, regulated by the norms of legislative acts. The tax itself is a payment levied by state authorized bodies in the budget and extra-budgetary funds to improve the well-being of the population and the content of the administrative apparatus.

Full-fledged establishment of the tax is carried out only after the determination of its main elements and categories of persons, which are obligated to pay. Do not forget about the establishment of a separate group of legal entities and individuals that can rely on discounts or benefits.

Elements of tax and their characteristics:

• Base (the foundation on the basis of which the amount of tax is calculated).
• Rate (the amount of interest accrued to the selected base).
• Period (the time during which the established rate and base of taxation is effective).
• Object (what is the tax paid from).
• The subject (the one who is obliged to pay it).
• Term (period for which payment is to be made).

Under the object should be understood a certain property or goods, a specific amount of income or profit and another object of value or material-material content. The current legislation provides for a list of objects that are subject to taxation. In our country such a document is the Tax Code of the Russian Federation , or the Tax Code of the Russian Federation.

Such elements of the tax as the rate allow the payer to independently consider the amount required for payment, relying on the income received or available property. Simply put, this is the government's share or a percentage of profits. Rates can be of several types:

• Proportional;
• Solid;
• Regressive;
• Progressive.

The former assume the same taxation without prior division by income. Solid interest rates of tax imply a certain amount of interest per unit of measurement of the goods, for example, one ton of gas. The progressive rate protects the unprotected strata of the population, as it increases with the growth of profits. That is, the more income a taxpayer receives, the greater part of it must be given to the state. The opposite effect is given by the regressive interest rate of the tax, since higher incomes lead to a lowering of the rate. Thus, the state stimulates the growth of productivity and efficiency of some industries.

But these are not all the elements of the tax prescribed in the legislative norms. The Tax Code contains the basic schemes and principles for the formation of the base and is an instrument for regulating, respectively, the authorized services at the federal and local levels. The basis for establishing the base in this reporting period is the information of the accounting records of each taxpayer. If during the audit of the legal entity there were some distortions or even mistakes, it is necessary to recalculate tax deductions and apply the corrected documents to the tax service if the payment has already been made. If, according to the data recalculation, there is a surplus of payment, he can, at the request of the taxpayer, either go to the account of the next period, or (which is less common) go to the bank account.

Elements of tax include both the period, that is, the period during which the established base and the tax rate are in effect. As a rule, a calendar year is chosen as the period. When an enterprise is registered as a legal entity, and therefore also as a taxpayer, the tax period is calculated from the moment of registration and until the end of the year.

The above components are elements of the legal composition of the tax. In general, they are all aimed at regulating the process and the system of payment of tax payments. And if we talk about strategic goals, the most important is the maintenance and improvement of the welfare of citizens and the country as a whole.