The tax base is a crucial concept that determines the value and quantity on which taxes are calculated, typically categorized into two main types: value-based and quantity-based.
Ad Valorem Base
The term "ad valorem" translates from Latin as "according to value." This type of tax base is calculated based on the value of a good or service. For example, ad valorem taxes are applied at a certain percentage of the price or value of a product. If a product's ad valorem tax rate is 10% and the product's value is 100 units, the tax base would be 10 units. Ad valorem tax bases are determined based on the values of economic elements and are associated with a specific tax rate.
Specific Base
A specific tax base is calculated at a fixed rate per quantity, measurement, or unit. It is determined based on technical quantities or physical measurements such as weight, number, volume, area, length, or alcohol content. For instance, if a specific amount of tax must be paid for each liter of gasoline, this represents an example of a specific tax base. This type of tax base is commonly applied in cases where the monetary value is relatively low, ensuring taxation is based on a specific quantity.
Tax bases are fundamental concepts in tax systems, ensuring fair and effective implementation of tax policies.
10.07.2024