Taxes in SR

direct taxes indirect taxes

income taxes property taxes universal taxes selective taxes

- personal - real estate - value-added - excise tax
- corporate - transfer of real estate (VAT)
- heritage
- road tax

The major taxes that affect business include those assessed to provide revenue for government – personal and corporate income taxes, property taxes and value-added taxes and those assessed to regulate and restrict certain business activities – excise taxes and customs duties.

Personal income taxes and corporate income taxes
They are paid from profits of sole proprietors and companies.

Property taxes
Companies and individuals who own property pay taxes on their land or buildings, etc.

Value-added taxes (VAT)
Taxes paid at each step in the distribution chain on the difference between the cost of inputs and the price obtained for outputs on that step.

Excise taxes
Taxes intended to help control potentially harmful practices or to help pay for government services used only by certain people or businesses. Here belong fuel, tobacco, alcohol, beer, vine, etc.

Business’s influence on government
Although the members of associations are competitive, they often have common objectives when it comes to government action. That’s why they create composition:
Lobbies – groups who try to persuade legislators to vote according to the group’s interests
Political action committees (PAC) – groups formed under federal election laws to raise money for candidates. They try to donate money to politicians. Companies can solicit contribution from their employees and give it to politicians through PAC.