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A tribute claimed by the Government with any direct compensation.

Taxes are monetary payments that must be paid to the Government without a specific type of compensation that exist in order to finance the services that the Public Administration needs to cover the collective necessities of its citizens.

They are a type of tribute that is charged to the general public, individuals or businesses for the possession of certain goods, for obtaining income o for any other type of act that is under taxation law. The Government can therefore attain the financing it needs that is used to defray part of its public expenses. A tax is made up of various elements.

• A taxable event: the actual act the gives way to a tributary obligation.
• taxpayer: a person or business that is obliged to satisfy a tributary obligation.
• Substitute: a persona that takes the responsibility for being the taxpayer for another.
• Tax collector: the Administration that receives the payment of a tax.
• Tax base: the amount over which a tax is charged.
• Tax rate: the percentage that is applied to the tax base in order to quantify the tax. These rates can be variable or fixed. Different

types of taxes exist in function of how wealth is taxed, such as:

• Direct taxes: these are applied directly to profits due to property, income, etc. Examples of these are the income tax, shareholder’s Equity tax, capital Gains tax, Inheritance tax, Property tax, etc. 

• Indirect taxes: these are applied to, for example, consumption which serves as an indicator of income and is paid when making a purchase. This type of tax is typically called a vat (value Added tax). 

Taxes are also divided into how they vary in quantity in terms of their tax base: