Taxes are involuntary taxes that people and companies must pay to a government entity (whether local, regional or national), in order to finance the State and the services that the government provides to citizens.
The payment of taxes is mandatory, and the tax evasiónIn other words, the deliberate decision not to pay taxes through different forms (most of them illegal) is an activity classified as a crime and prosecuted by law. Most governments have a state agency or department that is responsible for collecting taxes. In Spain this task falls to the Tax Agency.
What types of taxes are there?
In most countries, there are different types of taxes that are usually common, although the% recorded may be different:
- Income tax, which is levied on personal or business earnings
- Sales tax
- Property taxes
- Customs duties or taxes
However, you must be clear that the tax system varies greatly depending on each country, so it is very important to be clear about how the tax system of each country works before doing business.
Examples of taxes in Spain
The main taxes that apply in Spain are:
- VAT or Value Added Tax
- Personal Income Tax or Personal Income Tax
- IGIC (Canarian Indirect General Tax)