Tax

Is a cash levy collected by the government from individuals and

establishments in accordance with determined rules to finance
publicexpenditures and public projects for social and economic
welfare.

Tax Objective

Financing public expenditures and projects such as:

Education, health, security, and other public services and
benefits.
3

Tax Structure
Proportional Tax:
Thetax is imposed on a fixed rate on the taxable income
regardless of the amount or the type of income that the
taxpayer has, such as income tax of legal person (fixed
rate 22.5%).

Progressive Tax:
Thetax rate increases with the increase of the taxable
amount and vice versa, such as income tax of natural
person.
 Tax Classification
1- Direct tax

Tax is considered as being direct tax if the person who bears its charge is
the one who pays the tax.

For exanmple, Income tax

2- Indirect tax

Tax is considered as being indirect tax if it is possible to transfer its

burden toanother person.

For example, VAT tax in which the seller charges the buyer in the form
of an increase in sales price, then the seller pays it to the tax
administration at fixed time.

True or False

1. Direct taxes are paid by an intermediary.

2. A proportion tax is one in which the rate of taxation decreases as the

taxpayer's income increases.
3. Under progressive tax system all incomes are taxed at a single uniform rate.
4. Sales tax and custom duties are examples of indirect taxes.
5. Income tax, corporation tax on company's profits, property and wealth tax are
examples of direct taxes.
6. The proportional taxes varyin tax rates with the taxable amount.
7. According to the Egyptian tax system, tax is imposed on only the natural
persons income

8. According to the Egyptian tax system, tax is imposed on only the legal
persons income.
1. F
2. F
3. F
4. T
5. T
6. F
7. F
8. F