12. System of taxes/taxation

Fiscal system is a branch of society’s financial relations which represents redistribution mechanism of national income share through government/state budget.

Why does a society pay taxes? It so because it has the so-called public organizational arrangement / form of management. A state needs money/monetary means/financial resources to execute its functions. Substantial portion of these funds/assets is obtained by a state through taxes.

The more is the public sector in the economy and government grants the most must be public revenues and thus the tax burden is severer.

Taxes are different. 1. Income tax is paid as a part of total revenue by all enterprises, institutions and establishments (legal counsels) and private persons. 2. There are some specific taxes, such as: personal property tax and capital tax/levy (on possession/holding of property or receiving legacy/heritage, under property realization). 3. There still exist taxes on consumption, for example, VAT- value-added tax or excise duty on tobacco and spirits. Such duties are called indirect taxes as they are stipulated by/laid in prices for goods and we pay them purchasing these goods. 4. Surtax on wages is in the form of social payments/contributions to pay pensions and medical insurance benefits. 5. Marginal tax is charged /collected from income increment (growth, increase, gain). Tax under which increase of tax rates is simultaneous to the extension in possibilities to pay is called progressive tax. The taxes under which tax rates are equal or the same for everyone are called proportional/proportionate. The greater part of national production and services is sponsored (backed) at the expense of/(at the cost of) taxes. These funds/assets are less or more equally distributed among citizens – in the sphere of education, health service, pastoral care and etc.

All mentioned/outlined above common features characterize fiscal system. Each state both defines and legislatively registers its system of taxation is quite peculiar.

The Ukrainian fiscal system is in the state of formation at present. The latest Decree on taxation/tax assessment has introduced essential alterations/changes into the present system:

1. All enterprises irrespective of the form of property are taxed in compliance with the single system.

2. Common tax rate on profits has been determined/fixed – 30%.

3. Some considerable changes have been brought into existing system of tax exemptions/privileges. They are reduced.

4. New one, minimum, non-taxable threshold of 4,6 thousand coupons for individual tax payers was introduced.

5. The system of declaration of citizens’ revenues is supposed to be extended.

System of taxes will still be developing and changing together with the economy of our country.

I . Прочитайте та перекладіть текст.

ІІ. Перекладіть на англійську мову

1. Податок – обов'язковий платіж, який стягується державою в різних формах з фізичних і юридичних осіб до державного і місцевого бюджетів .

2. Додана вартість (приріст вартості) включає заробітну плату з нарахуваннями, амортизацію, відсоток за кредит, прибуток, витрати на електроенергію, рекламу, транспорт.

3. Обкладання нерозподіленого прибутку здійснюється у вигляді додаткових податків або знижки при обкладенні розподіленої частини прибутку.

4. Податок на прибуток корпорації – це податок на доходи юридичних осіб, який існує у всіх капіталістичних країнах.

5. Податок на прибуток корпорацій стягується на основі податкової декларації по пропорційних ставках.

6. Податок з обороту – один з основних видів непрямих податків. Це універсальний акциз, який стягується з обороту товарів, вироблених всередині країни (у деяких державах – з товарів іноземного виробництва).

7. Податкові пільги – часткове або повне звільнення фізичних або юридичних осіб від податків.