مقدمة حول الضرائب

Introduction to Taxation

• Taxation was initially viewed as a payment to the state for protection.
• Its modern role extends beyond covering state expenditures, encompassing reducing income disparities.
• It's a mandatory financial obligation enabling the state to achieve economic, political, financial, and social goals.
• Modern definition: Tax is a compulsory payment made to the state for covering its expenses, not exclusively. It also aims to reduce income inequality among different social classes.

Types of Taxes

• Direct Taxes: Imposed on individuals directly responsible, regardless of their socioeconomic status (e.g., income tax).

  • Income Tax (Law No. 91 of 2005) covers individuals and corporations.
  • Income tax is divided into personal income tax and corporate income tax.
  • Personal income tax covers several categories: business, salary, and professional income, and property income.

• Indirect Taxes: Imposed on goods and services, with the burden often passed on to consumers (e.g., VAT, customs duties).

  • Value-Added Tax (VAT) on goods and services.
  • Customs duties.
  • Stamp tax.

Taxation Structure in Egypt

• The structure is constantly evolving.
• Direct taxes are imposed on individuals.
• Indirect taxes are imposed on goods, services, or transactions.
• The current structure includes income taxes on both individuals (salaries, business profits, professional work, and property income) and corporations. Indirect taxes such as VAT, customs duties, and stamp duties are included as well.

Taxation vs. Fees

• Tax: A compulsory financial obligation imposed without a direct corresponding service or benefit. The government uses tax revenue to meet its obligations and provide public services.
• Fee: A payment made to the government for a particular service (e.g., permits, licenses).

Taxation vs. Levies (or duties)

• Tax: This is a compulsory contribution made by citizens for the common good.
• Levies/Duties: Payments, often associated with specific privileges or concessions granted to individuals or entities. Levies are for specific public services.

Taxation vs. Zakat

• Zakat: An Islamic obligatory charity with fixed rates and conditions. It's an ethical and religious obligation, not a state-imposed tax.
• Tax: A state-imposed financial obligation collected according to legislative regulations.

Objectives of Taxation

• Political: Enabling the state's functions and implementation of its objectives.
• Financial: The primary tool for state funding. Government spending influences tax needs.
• Economic: Influencing investment and economic activity. Includes encouraging investment in specific sectors or discouraging undesirable economic growth.
• Social: Achieving social equity through income redistribution and poverty alleviation.

Tax Audit and Financial Audit

• Tax Audit: Aimed at determining the tax liability; carried out by tax authorities. Focuses on compliance with tax laws. Verifies reported income and deductions to determine accurate tax liability.
• Financial Audit: A critical review of financial statements by an auditor. This determines their integrity and accuracy according to generally accepted accounting principles.

Tax Exemptions

• Social Exemptions: Reflecting the taxpayer's circumstances (poverty levels, family responsibilities) allow for exemptions based on these factors.
• Economic Exemptions: Designed to encourage investment and participation in specific economic sectors via incentivizing these sectors. Examples include agricultural and livestock farming exemptions.
• Political Exemptions: Generally, exemptions between countries under international agreements. Examples include exemptions for political and consular staff under reciprocity.

Rate of Tax

• Proportional Tax: A fixed percentage of the taxable base; the rate remains constant at all income levels.
• Progressive Tax: Higher rates apply to higher income levels; attempts to achieve greater social equity.

Tax Calculation (assessment)

• Establishing tax liability (the amount a taxpayer owes):
  • Verify that the taxable event has occurred (e.g., income generation).
  • Determine the value of the taxable base (income.) Subtract allowable deductions.
  • Apply the applicable tax rate.

Tax Declaration Processes

• Tax authorities review declarations, leading either to:
  • Approval after verification of accuracy.
  • Modifications if errors are identified.
  • Rejection if non-compliance or inconsistencies are found, prompting further investigation

تعتبر الضرائب وسيلة مالية ملزمة يتم دفعها للدولة، وتساهم في تحقيق الأهداف الاقتصادية والاجتماعية. في هذا الكويز، ستتعرف على أنواع الضرائب المختلفة، بما في ذلك الضرائب المباشرة وغير المباشرة، ودورها في تقليل الفجوات الدخلية بين الفئات الاجتماعية.