oboloo Glossary

Taxes

oboloo Glossary

Taxes

Taxes are an important source of revenue for governments around the world, helping to fund vital public services like healthcare and education. But what is the official business definition of taxes? Put simply, taxes are a fee imposed by a government on individuals and organizations that produces income or profit from property, or from goods and services provided in the country where the tax is levied. They can take different forms, such as income taxes, sales taxes, excise taxes, withholding taxes, estate taxes, and more. In addition to being a form of public finance, taxes also serve to promote certain behaviors and discourage others, such as encouraging trade between countries or discouraging smoking. By understanding the official business definition of taxes, businesses can make sure they pay their fair share and plan accordingly.