A tax is a mandatory financial charge or levy imposed on a taxpayer (an individual or legal entity) by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities.[1] Tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax relief.[2] The first known taxation occurred in Ancient Egypt around 3000–2800 BC.[3] Taxes consist of direct or indirect taxes and may be paid in money or as labor equivalent. All countries have a tax system in place to pay for public, common societal, or agreed national needs and for the functions of government.[citation needed] Some countries levy a flat percentage rate of taxation on personal annual income, but most scale taxes are progressive based on brackets of yearly income amounts. Most countries charge a tax on an individual's income