Classification of social and improvement tax contributions

in hive-175254 •  2 years ago 

Tax contributions are divided into improvement contributions and social security contributions. Improvement contributions are those that increase the value of a property of a private individual. It is the obligatory payment to the State or Public Entity on the occasion of the execution of a work for general utility purposes and which increases the value of the real estate of a private individual.

Source ( taxfoundation )

As for social security contributions, they are those that pursue a social purpose and are the levies made by certain public or semi-public organizations on their users, to ensure their autonomous operation.

It is considered that the pecuniary benefits in favor of non-territorial public institutional entities are configured by their coercive nature as any other fiscal tax, without any relevance for defining the notion of parafiscality in terms of budgetary figures or a certain form of accounting.

Such taxes are qualified as special taxes, but the truth is that such entities may also demand special rates and contributions, in many cases performing a kind of osmosis between public law and private law, which requires a careful examination of each contribution.

Source ( econlib )

In this sense, these contributions can be considered as true taxes, since the benefit of the tax is distributed over the collectivity as a whole, and in the parafiscal contribution, the benefit is for a professionally or socially delimited group.

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@tipu curate

greetings @alaiza _
thank you very much for sharing fiscal content that in many times we see it in the organizations and we do not know what it is about, no doubt that taxpayers always want the cancellation of their taxes to be paid to their social security.