SIMILARITIES AND DISTINCTIONS BETWEEN TAXES AND CONTRIBUTIONS

This paper aims to analyze taxes and contributions in order to establish the similarities and distinctions between the two financial terms. As a special emphasis, we need to also note that taxes denote the payment obligations that, in reality, are fiscal, even if some of them are improperly called taxes. Some of the noted distinctions, for example, are "the valued added tax" which is not a "tax" in reality; in fact, it is a "pure imposition", an "indirect imposition", one of the most important fiscal sources of the state budget. Fiscally speaking, there are both similarities and essential distinctions between "tax" and "contribution". We describe hereunder both the similarities and the distinctions between "taxes" and "contributions" in general, and "retirement contributions" in particular. Therefore, when taxes are discussed, it is only understandable that they also include the valued added tax. We analyze the definitions of the terms, their implications and characteristics.