Each country can have one or more systems of taxation. Each system deals with the taxation of specific aspects of a business transaction. For example, a sales tax system deals with the rules and regulations concerning how a sale should be taxed. Similarly, a Value Added Tax (VAT) taxation system deals with how the value addition in a manufacturing and/or sales lifecycle needs to be taxed.
- A Tax Regime can be defined as a single system of taxation.
- A Tax Regime is implemented by one or more distinct charges. Each such specific charge is called Tax.
- A Tax Regime may include one tax or several different taxes.
- The imposition of a tax is limited by a geographical boundary. The incidence of any tax on a specific geographical area is called ...