What is a withholding tax and to what is it paid?

What is a mandatory tax?
It is one of the types of taxes that the duty to pay to the country's tax organization, according to the law, is the responsibility of a person (natural or legal) other than the person subject to payment. For example, if you work for an organization or company, the employer is responsible for deducting this cost from your salary.

In fact, the payer of this type of tax is the person, organization or employer who receives the service from you. For this reason, they are required to deduct this cost from your salary and pay it to the IRS. If you are a recipient of the service (employer), you must include this in the contract with third parties. As you know, the government receives various taxes from the legal entities to compensate a part of its budget, as well as the development of the country.

Types of mandatory taxes
If we want to examine exactly what the tax is due to? We will probably have a difficult task ahead. However, in the following, we will suffice to examine some of their important types and name some others.

Property rental
It is one of the most important types of taxes paid, which includes income from the entire property. Of course, keep in mind that paying it is only a liability if you are a renter or property owner.

If you are a natural person and a tenant of the property, you are not responsible for paying the tax and the legal person who owns the property must pay it. However, if you are a legal entity and you have rented a property, it is still your duty to pay the tax. In general, if you are a legal entity, whether you are a tenant or a property owner, you are required by law to pay income tax on it.

Salary tax
The most well-known type of tax is a duty that usually has no happy memories. In this case, the employer or the recipient of the service is obliged to deduct a percentage when paying salaries and pay it to the country's tax organization on time.

In fact, the government and the tax authority hold the employer accountable. According to the law, employers are intermediaries between the government and employees, and the service providers themselves are not involved in paying for it.

Honorarium
In this case, too, lawyers are recognized as employers and are required to pay taxes on time. In this regard, when a lawyer enters into a contract with his client, according to Article 3 of the Tax Law, he must deposit 5% of the total contract amount to the account of the Tax Administration. If for any reason the lawyer refuses to pay on time, they will be fined. This penalty includes 20% of the total contract amount with the client.

Doctors tax
In recent years, a system called the duty tax for physicians has been launched by the tax authority. According to Note 6 of the Budget Law, all medical centers are required to deduct 10% of the physician's fee or fee and deposit it with the Tax Administration.

Tax of insurance companies
Insurance companies are also required by law to pay this type of tax. For this purpose, foreign insurance companies that earn income from insurance companies in this country are subject to a tax rate of 2%.

Domestic insurance companies are also required to deduct a rate of 2% from the taxable foreign insurer, which is subject to tax, in accordance with the above article. These funds are deducted by the end of the month after that date and must be paid by the Internal Insurance Institute to the country's tax organization.

According to this law, the person who provided the cash is obliged to pay income tax to the person who received the cash. Of course, it is necessary to mention that if the bank has the role of supplier, there is no need to pay taxes.