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Now The difference between fees and taxes

In this article, we will try to answer all the questions on your mind about taxes and fees, as this topic is an interesting topic for everyone interested in tax and fee issues.
The difference between taxes and fees through the USAGEK site, many people mix taxes and customs duties and do not find a description of each of them as they provide taxes on property, salaries and purposes while paying fees for services and goods obtained from different institutions and interests. We have devoted this article to presenting and clarifying the difference between taxes and fees.

What are taxes

Taxes are a type of fee that is mandatory for persons and legal entities and is paid as an individual participant in the financing of national projects implemented by the State to upgrade and advance development processes. Taxes are one of the duties of citizens toward the country in which they live and enjoy all their rights on their land.

In countries, the law imposes severe penalties on persons fleeing tax payment, taxes may be paid directly or indirectly, and they are collected in compulsory cash at fixed and fixed times.

Define the fee

Fees are defined as a sum of money paid for services and collected directly or indirectly from the customer through the customer's bank account, and charges are commonly applied in the day-to-day transactions of individuals such as “travel time expenses, truck rental fees,” Liability and compensation Insurance fee, Planning fee.”

Types of taxes

Taxes are classified according to what we have said before into two types: Direct taxes, indirect taxes” and each other’s payment and collection, which are the difference.

Direct taxes

Direct taxes are the simplest form of taxes that are levied directly on different people and entities and are also collected directly and cannot be transferred to another person or entity, and direct taxes are subject to certain rules. They are usually imposed on a financial basis, such as the value of income and capital.

Perhaps one of the most important examples of direct taxes is the tax that the state imposes on the value of citizens’ income, whether from corporate interests or income from private businesses such as shops, shops, and businesses.

Indirect taxes

Indirect taxes vary that they are not only levied on a financial basis, but also on the basis of the use of money and are also collected indirectly. These taxes are taken in an excerpt from the value of capital or on the production and consumption of various goods and services.

One of the most important examples of indirect taxes is the tax levied on income expenditures, the tax levied on the transfer of wealth, the registration of property contracts, and other savings.

Fee types

There are many types Fees are based on the purpose or purpose of their payment and vary by the party they collect, and fees may be divided by type to:

Bank charges

Fees charged to bank account holders as a penalty in the event of a debit on the account or late payment of the credit card as well as fees charged to persons who are trading in stocks and investment funds.

Industrial fees

The list of charges imposed by government and private telecommunications companies includes Telephone services such as call-making and Internet services, and mail charges are also included.

Administrative charges

This type of fee is paid for services provided by the State on various services such as case raising fees, garden and public parks entrance fees, building fees, companies, factories and others.

What is the difference between taxes and fees

Both taxes and fees are a financial sum to be paid to government agencies to finance projects and government spending. The two differ in the method and nature of collection, and can be differentiated in the following elements:
  • Taxes are levied after the percentage of total income is calculated and the fees are charged for the service provided.
  • Taxes are levied and collected on a mandatory basis and fees are not obligated to pay if the order of the goods or service is abandoned.
  • Taxes are paid as a duty of the citizen toward the state No service is available in exchange, while fees are paid for the services provided.
  • Taxes are levied to achieve the country's higher interests, while fees are levied to regulate various activities and are a kind of social justice.

In this article, we showed you the difference between taxes and fees, if you have any other questions; you can leave your comments below the article, and we will try to respond to you as soon as possible.
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