The tax system is a set of principles related to the collection of taxes and fees on the territory of the country. It also provides for the forms of establishment, collection and payment of taxes.
Functions of the tax system of the Russian Federation
The general principles and types of taxes levied in the Russian Federation are described in the second chapter of the Tax Code of the Russian Federation. The main functions of the tax system are:
- fiscal, which consists in the need to replenish the budget for the state to perform its functions;
- distributive, implying the distribution of the social product between various economic sectors, as well as regions;
- regulatory, aimed at the active influence of the state on socio-economic processes;
- control, the essence of which is in the proportional distribution of income.
Current taxes in the Russian Federation
The tax system of the Russian Federation is distinguished by the variety of taxes levied. According to the method of collection, they are divided into direct (for example, personal income tax) and indirect (VAT, excise taxes, etc.).
In Russia, there are also three main groups of taxes - federal, regional and local.
Federal taxes are required to be paid throughout the territory of the Russian Federation. These taxes include VAT, excise taxes (for example, on alcohol, cigarettes), personal income tax (for individual entrepreneurs and for employees), income tax (for companies). In some sectors of the economy, companies pay taxes on the extraction of minerals (for example, oil and gas companies), water tax and fees for the use of wildlife. Until 2010, the federal government also included the Unified Social Tax, but since 2010 it has been replaced by insurance premiums.
Regional taxes are paid on the territory of the respective entities. Regional authorities can modify or abolish these taxes. This tax group includes the tax on the property of organizations, on the gambling business, as well as the transport tax. The latter is paid by both individuals and companies.
Local taxes are regulated by the laws of federal authorities and constituent entities of the Russian Federation. Local taxes include land tax and property tax for individuals.
It should be borne in mind that all these groups of taxes are paid only by organizations that apply the OSNO (general taxation system). However, on the territory of the Russian Federation, there are also special tax regimes in which the collection of a number of taxes is terminated. These include, for example, the simplified tax system. Under this regime, organizations are exempt from paying income tax, VAT, property tax. All of them are replaced by a single tax.
Control over the payment of taxes is carried out by means of a cameral and on-site tax audit. A cameral audit is carried out directly at the tax service on the basis of the submitted declarations and other documents. The exit is made at the place of business of the taxpayer.
