Porezi

Porezi is the plural form of porez, the word for tax in several South Slavic languages, notably Croatian, Serbian, and Bosnian. As a broad term, porezi signify compulsory charges imposed by government authorities on individuals and organizations to fund public services and to influence economic behavior.

Tax systems vary by country but share common functions: revenue collection, redistribution, and stabilization of the economy. Taxes can be direct, levied on income or wealth, such as personal income tax, corporate income tax, and property tax, or indirect, levied on consumption or production, such as value-added tax (VAT), sales tax, excise duties, and customs tariffs. Many countries also require social security contributions that fund pensions and healthcare.

Administration: Porezi are typically defined in tax codes and collected by a tax authority. Compliance is supported by self-assessment, withholding at source, and reporting requirements. Enforcement includes audits and penalties for evasion. Tax policy debates focus on fairness, efficiency, growth, and administrative complexity.

International dimension: In a global economy, countries use treaties to prevent double taxation and apply transfer-pricing rules to multinational corporations. Initiatives like the OECD's BEPS project aim to curb avoidance by aligning profits with economic substance and improving transparency.