Taxes levied on individuals and legal entities are an important item of budgetary revenues. Their timely receipt in the budget is a guarantee of the fulfillment by the state of its obligations to citizens. The amounts received in the form of taxes are directed to the maintenance of the authorities, the army, budgetary organizations, salaries for teachers and doctors, road construction, and targeted financing programs. Taxes are allocated to budget levels.
Division of taxes by budget levels
In the Russian Federation, according to the current Budget Code, there are three levels of budgets: federal, regional and local, as many as there are levels of government. Each level of government has its own, separate budget, within which the government carries out financing, spending the income received in the form of taxes for those purposes that are within their competence.
Part of the taxes that are paid by citizens of the country and entrepreneurs are immediately intended to be paid to one or another level of the budget, so 100% of the amount of these taxes goes to the federal, regional or local budget. For example, the entire amount of the unified social tax, state duty, customs duties, federal license fees are transferred to the federal budget. The income of the regional budgets goes to the transport tax and the tax on the gambling business, the tax on advertising, the land tax and the tax on property of individuals go to the local budget.
But there is a part of taxes that are divided in a certain percentage or, as financiers say, are regulated according to the budgets of all three levels. These are, for example, income tax, personal income tax and value added tax.
The State Duma decides in what percentage ratio a particular regulated tax will be divided according to budget levels, when adopting the next state budget.
Tax distribution mechanism
If you have listed or will ever list taxes or duties yourself, you will see that the territorial Federal Treasury is the recipient of all tax deductions. At the same time, in the receipt or in the payment order, you will definitely have to indicate the budget classification code, which will determine what type of tax you paid.
When filling out a payment order or receipt for the transfer of a particular tax, it is important to correctly indicate the budget classification code so that your money goes to the budget for which it is intended.
When your payment order is processed by the Treasury, the amount will be transferred, depending on the type of tax, to one or three budgets, or it will be divided by budgets, if this tax is regulated. The Treasury immediately generates payment orders and on the same day transfers all received amounts to the federal, regional and local budgets.
