The Notion of a Taxation System. The Taxation System of the RM. - Colegiul Agroindustrial din Ungheni

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1. The Concept of a Taxation system 2. The Taxation Legislation 3. The Taxation System of the Republic of Moldova 4. The Taxation Apparatus Part 1. The Concept of the Taxation System The taxation system represents the totality of various types of taxes, the elaboration and calculation of which relies on certain principles. The taxation systems of most countries developed throughout centuries under the influence of various economic, political, and social conditions. This is why it is natural that taxation systems of different countries vary in the types of taxes used, according to the structure of taxes, to their rates, methods of collection, fiscal authorities from various levels, according to the rate, magnitude and quantity of allowances offered, as well as other indices. Yet, all the countries follow some general principles, which allow the creation of optimal taxation systems. Since the taxation system of the RM was built following the framework of developed countries, it is necessary to make a review of these countries’ taxation systems of. The existing taxation system of developed countries includes a large number of taxes and its structure depends on the organization of the state. In unitary states the taxation system includes two elements: state and local taxes. In federal governments the taxation system includes three elements: state (federal) taxes, taxes related to the federation subjects (regional taxes), and local taxes. The main taxes, which result in the highest collections for the budget, are related to the state budget. They include the income tax, corporation profit tax, VAT, excises and customs duties. The international experience has proven that the highest level of taxes is collected through the income tax (from 25 to 45% of the state budget). This tax is collected by using progressive rates, determined through the method of complex progression. There are two systems of applying the income tax: ...