direct tax

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Related to Direct taxation: Indirect taxation

Direct Tax

A tax that cannot be shifted to another person or entity. For example, taxes on income or assets are direct taxes, as the person or organization on whom they are levied must pay them directly. Direct taxes differ from indirect taxes, such as sales tax, which is levied on a seller but is paid by buyers. There is disagreement as to whether a corporate tax is a direct tax or indirect tax.

direct tax

A tax paid by the individual or organization on which it is levied. For example, the personal income tax is levied on individuals, who end up bearing the entire burden of the tax. A direct tax cannot be shifted from the entity on which it is levied. Compare indirect tax.

direct tax

a TAX imposed by the government on the income and wealth of persons and businesses in order to raise revenue, redistribute income and wealth, and as an instrument of FISCAL POLICY in managing the economy. The main forms of direct tax in the UK are INCOME TAX, CORPORATION TAX, NATIONAL INSURANCE CONTRIBUTIONS and INHERITANCE TAX. See BUDGET (GOVERNMENT).

direct tax

a TAX levied by the government on the income and wealth received by individuals (households) and businesses in order to raise revenue and as an instrument of FISCAL POLICY. Examples of a direct tax are INCOME TAX, NATIONAL INSURANCE CONTRIBUTIONS, CORPORATION TAX and WEALTH TAX.

Direct taxes are incurred on income received, unlike indirect taxes, such as value-added taxes, that are incurred when income is spent Direct taxes are progressive, insofar as the amount paid varies according to the income and wealth of the taxpayer. By contrast, INDIRECT TAX is regressive, insofar as the same amount is paid by each tax-paying consumer regardless of his or her income. See TAXATION, PROGRESSIVE TAXATION, REGRESSIVE TAXATION.

References in periodicals archive ?
The workshop will cover the challenges that oil and gas companies will face as they establish operations in the Cyprus environment, including direct taxation, indirect taxation (VAT), human capital and other related operational matters.
The Central Board Of Direct Taxation (CBDT), which issued a statement on Wednesday in which it did not name the political parties or entities, said the notices to AAP and others have sought information about the identity of the contributors and other relevant details necessary to complete the probe.
Of these additional taxes 805 million euros to come from direct taxation and 930 million euros from indirect taxation (such as VAT).
Revenues from direct taxation as a percentage of GDP will remain at the same levels as this year -- 14 per cent -- while indirect taxes will make up 17.
He said government should take measures to improve direct taxation because more than 60 percent tax revenue is collected through indirect taxes including sales tax, FED and customs duties etc.
Two political factions are at loggerheads over taxation: nationalists want Congress to have direct taxation authority, while their opponents insist that only individual states should have the power to do so, as is the case under the Articles.
Adam Price for his pro business direct taxation concept to encourage Welsh entrepreneurship as stated in her speech.
As there is no direct taxation on owning cars, such as a road tax system, how about diverting some of the fuel subsidies from petrol to use of electric vehicles?
According to the International Bureau of Fiscal Documentation (IBFD) and World Bank, the number of countries that introduced specific transfer pricing regulations for direct taxation purposes skyrocketed between 2007 and 2011.
But you and these fellows come along and tell me I must pay so much in direct taxation that I wouldn't have enough left to buy a few decent cigars.
Small business owners have a clear agenda for governments - to reduce direct taxation, simplify accounting rules and stimulate lending.
On top of this sum, the lifetime cost of direct taxation, including income tax and national insurance contributions, amounts to PS385,000 for the average household, according to Prudential's calculations.