Taxes and their application in Venezuela
When we talk about taxes, they are all those payments required by the State, included in its 3 levels, National, Regional and Municipal, which are governed by the principle of legality, that is to say, they must be established in a law, which are collected for fiscal or extra-fiscal purposes, which does not entail a specific consideration, nor an immediate responsibility, in this way it is obliged to cancel any person framed in that law within the National territory, and these taxes are classified into taxes, rates and contributions.
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Taxes are divided into two three types, which respond to the nature of the taxable event, understanding by taxable event the action that generates the tax, as well as the manner of collecting it. Villegas (2002) classifies them as follows: taxes are "taxes whose generating fact is integrated with a divisible and inherent activity of the State".This tax reflects a consideration for a service, i.e., we pay the tax to receive an immediate benefit, a clear example of which is the tax paid at airports, where taxpayers receive a service for the payment of this tax, and this benefit is received immediately.
In this order of ideas, another type of tax is the Contributions, about which Villegas (2002), points out that "they are those taxes where the taxable event lies in the obtaining of a benefit by a taxpayer, which benefits a certain real estate, in accordance with the execution of a public work whose greater value brings an economic advantage", a clear example would be the payment of tolls, where we make this contribution in order to transit the roads in good condition, and its benefit is collective.
The third type of tax is the tax, which is required for the purpose of satisfying the public expenditure of the country, in the primary areas such as health, education, housing, among others, in this regard Tolosa (2003) states that: "taxes are taxes levied without consideration, whose taxable event is constituted by business, acts or facts of legal or economic nature, which show the taxpayer's ability to pay, as a result of the possession of assets, the movement of goods, the acquisition or expenditure of income".
For this last tax, called tax, there are many types of them such as income tax, in which the taxable event would be the enrichment of the person, demonstrating its ability to contribute to the public expenditure of the country, due to the income received in the territory, and as its word indicates are taxes, mandatory.
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To conclude, it can be indicated that the state is the guarantor that people comply with their duty to contribute to public expenses, through the entities in charge of performing this work, in the case of Venezuela it is the National Integrated Service of Customs and Tax Administration (SENIAT), through the provisions of the Organic Tax Code (COT 2014), in its article 13, states that the tax obligation arises between the state, in any of its representations and the subjects, at the time they commit the taxable event. This may occur at any level of state power; national, regional or municipal.
- Villegas, H. (2002). Curso de Finanzas, Derecho Financiero y Tributario. 8va Edición. Editorial Astrea. Buenos Aires – Argentina.
- Código Orgánico Tributario
hello @chucho27,
this is a very delicate issue for Venezuelans as this is one of the countries that collects the most taxes but these taxes are not reflected in almost any area, the state collects taxes and then the citizens do not know where they spend them, not to mention that many taxes were increased at the beginning but the state does not seem to want to lower them again, personally I think that if taxes are not being well administered the citizen should not pay them.
Greetings@ chucho27. Interesting publication where you describe the different types of taxes and the levels of government where they are applied. For governments, taxes are necessary, since they are mechanisms to obtain resources to finance public spending.
Thank you very much for sharing your publication
Greetings friend @dgalan, that's right, it is always important to know the financing mechanisms in countries, as it is through taxes, in order to obtain resources and meet public spending, thanks for your comment.
Greetings @chucho27, taxes are obligations that the taxpayer has to fulfill because they are framed in a Law, personally I have a doubt, for example you mention the tax or rate that the citizens pay in tolls and this resource should be used for the maintenance of the road and it turns out that the road is all destroyed, as well as they force to pay the toll fee, the state should be obliged to maintain the roads, ie to repay the tax in services for citizens.
Greetings friend @carlir, regarding the contribution that is made by the payment of tolls, if it should be a retribution in terms of maintenance of the road that includes that road, although not everyone does it, it would be an issue that the Municipal government to which the toll belongs to place the letters in the matter, interesting concern and thanks for commenting.
Taxes are important to get services or to benefit the community or the place you live in, yet I didn't know that there are many types of taxes, thanks for your article it explained a lot to me.
Sadly many places in the world, people have to pay taxes just to pay, they don't see any true impact of it in their lives, which is usually going the bad governments in control.
Thanks for sharing!
Greetings friend @lennyblogs, I am glad to know that my article left you valuable information, and allowed you new knowledge, which is what is desired, as for the second part of the comment, it is a sad reality that we do not always manage to enjoy the positive aspects of tax payment, for whatever reason that is not given, but it is important to know the purpose of them, thank you very much for commenting.
In country like india, over the years, the quality of service provided by government hospitals has improved by leaps and bounds, and it has only happened because of taxpayers paying tax.
Thanks for sharing!
Greetings @benie111, that is one of the main benefits generated from the payment of tax, and with a good administration by the rulers, it can bring very good results, thank you very much for commenting.
Very didactic publication friend @chucho27, especially because many people understand that the payment of taxes is due solely and exclusively to guarantee services, when in reality, except for the exceptions you explain, most of them are designed to support the government structure, such as such as operating expenses of public entities, social investments, etc.
The issue is when in countries, like Venezuela, when you do not see positive results in government management, people end up wondering what these payments are for if they do not receive any benefit for this.
On the other hand, I consider that in our country many of the taxes violate the principle of non-confiscation, since they distort the nature of the taxable event, as in the case of the advance calculation for ISLR that was previously carried out through a projection of annual profits ( self-determined by the taxpayer) and now on the basis of monthly sales (by the VAT return) which makes it go from being a tax calculated based on sales and not based on income (profits).
Thanks for such valuable content, greetings
Greetings friend @karupanocitizen, excellent comment, it is necessary to know what is the destination of the taxes we pay, and thus have a clearer knowledge about the possible benefits.
Responding to the second part of your comment, regarding the principle of non-confiscation, and the nature of the taxable event, in the case of ISLR, the truth is that it is a topic for debate, as there are references that support your point of view, while others agree on the way of calculating the advance payment of ISLR, from my point of view I support your opinion and it would be very good to develop a post on this topic.
Thank you very much for your valuable comment.
Well, you are very right friend @ chucho27 it would be good to express that opinion in a publication !!!, come out brother.
Hi @chucho27
Finally I've found some time to catch up with previously bookmarked posts. Upvoted already :)
It has surely be quite an interesting read.
Don't you sometimes wonder - why do you need to pay taxes while your goverments (teaming up with central bank) can print as much new currency as they want?
This sentence doesn't make much sense ...
Hope you're having a great weekend,
Cheers, Piotr
Greetings friend @crypto.piotr, when citizens pay taxes we can receive a collective benefit, such as education, health, security, among others, and without propitiating inflation, since governments that start issuing currency, at the time that this currency has no real support, the inflation that will generate will be huge, losing the purchasing power of the currency and destroying the economy of a country.