In ancient times, man used to be uncivilized with no rules and laws. He could do everything and anything without fear of getting punished but as the time passed by man become more and more civilized. This civilization was obtained by setting certain rules and laws. These rules and laws are extremely important to run a country. There are some laws which are same all across the world and one such law is the good tax return. Tax is the money paid to government by the citizens of a country who avail the common benefits from the country. In this article, we will be discussing about business tax return and various types of business tax return.
Tax:
Let us first clear the concept of tax before directly discussing about business tax return. Tax is the obligatory contribution levied by the government on its citizens who have certain amount of money or possessions. As citizens of a particular company avail different benefits from the country and its government so it is compulsory for citizens as well to contribute for the betterment of a country. There are various kinds and types of taxes like business tax return, excise tax, sales tax, etc.
Business tax return:
Business tax return can be defined as a statement or record of income, profit or any other kind of possession that a person holds in his business. It also contains the details of assets and liabilities that a business collects yearly. If a business exceeds certain limit set by a government then a person has togive the tax according to his possessions. Every country has levied different amount of tax on different objects and profits. However, most of the countries have levied almost sixty percent of the tax but variations can be seen.
Types of business tax:
Business tax can be divided into five major types. One of which is franchise tax in which the franchise of the organization or business is calculated based on the net worth held by the entity. Another type of business tax is employment tax. This type of a tax involves the income that has been deducted from employee’s income by the organization has to be given to the government. Thirdly, there is excise tax, which is levied at the moment of manufacture rather than the sale.Then there is gross receipts tax which is levied on total gross possession or profit of organization or company. Lastly, there is a value added tax; this is the amount by which value of an article has been increased on which tax is levied.
Conclusion:
Tax is the amount that is levied by the government on every citizen on various objects, income and profits. Every citizen should give the set amount of tax to the government being a citizen of a country. Business tax return is the record or list of income and profit that an organization collects. There are five types of business tax. “Ezy tax online” provides their help for business tax return without asking much in return.