Classification of Taxes

Flashcards covering key terminology and definitions related to the classification of taxes, suitable for exam preparation.

National tax

A tax imposed by the National Government.

Local tax

A tax imposed by local governments, such as provincial, city, municipal, or barangay.

Fiscal tax

A tax imposed for the general purpose of the government or to raise revenue for government needs.

Regulatory tax

A tax imposed for the purposes of regulation, such as licenses and permits.

Special or sumptuary tax

A tax imposed for a special purpose or to achieve social or economic ends.

Personal tax

A tax of a fixed amount imposed on individuals residing within a specified territory.

Property tax

A tax imposed on property, whether real or personal.

Excise tax

A tax on commodities or excisable articles.

Privilege tax

A tax imposed upon the performance of an act or enjoyment of a privilege.

Direct tax

A tax for which the taxpayer who pays the tax is directly liable.

Indirect tax

A tax paid by a person who is not directly liable, and may shift the burden to another.

Specific tax

A tax of a fixed amount imposed by the head or number.

Ad valorem tax

A tax imposed for a fixed proportion of the amount or value of the property being taxed.

Proportional tax

A tax based on a fixed percentage of the amount of property, income, or other basis.

Progressive tax

A tax rate that increases as the tax base increases.

Regressive tax

A tax rate that decreases as the tax base increases.

Mixed tax

A mixture of proportional, progressive, or regressive tax structures.