#EnlightTalks series within the framework of “Enlight” three-month analytical internship program.
On August 10, within the framework of the analytical practice, the joint speech of “Enlight” analysts, economists by profession Marianna Manvelyan and Mariam Khachatryan took place on the topic “Everything you need to know about tax accounting”.
During the meeting, they talked about the content of the Tax Code, and about what is income tax, real estate tax, vehicle property tax, profit tax in more detail.
At the beginning of the meeting, the speakers briefly presented what tax accounting is and how it arose. Now, the main reason for the emergence of tax accounting was the increase in the role of the state in society. Initially, financial accounting was more common, and tax accounting was formed primarily to finance the war. During World War I, when there was a shortage of funds to supplement the state budget, the state created taxes.
When introducing the income tax, it was mentioned that it is the state tax paid to the state budget for the object of taxation in the manner and amount prescribed by the Code, which, like all other types of taxes, has a tax object (gross income of individuals) and tax base (difference of corresponding deductions of gross income) is paid to the state budget. Reference was also made to income tax accounting and cash methods.
Speaking about the sources of income, it was mentioned that among them are the salary, received within the framework of employment contracts and equivalent payments, incomes, received within the framework of civil contracts, passive incomes (interest, rental payments, dividends, royalties) and other incomes. There was also talk of declining incomes.
Then the speakers referred to the real estate tax and the property tax of vehicles. The procedure of taxation of the amount of payable tax to the local budget in the case of the real estate tax and vehicle property tax was also presented.
The speakers also touched upon the profit tax, the entities paying profit tax, the tax object of the latter, and the tax base.
At the end of the meeting, the speakers clarified the characteristics of the different types of expenses encountered in the tax code and answering some questions of interest to the participants, summed up the meeting.
Prepared by Mariam Mankuyan
You can get acquainted with Mariam Khachatyan’s analytical articles by following this link.
You can get acquainted with Merianna Manvelyan’s analytical articles by following this link.
Translator: Mariam Sahakyan
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