direct tax


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.
Related to direct tax: indirect tax, income tax

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 ?
81) The South Carolina direct tax statute imposed levies on carriages and slaves, stock-in-trade, and occupations, as well as real estate.
The direct tax of 1798 imposed taxes on "lands, houses and slaves" totaling $2 million over the next two years, apportioned to states in amounts according to representation (as measured in the U.
FBR Member Direct Tax Policy said that the direct tax collection stood at Rs 481 billion against the target of Rs 540 billion, sales tax collection stood at Rs 501 billion against the target of Rs 540 billion, federal excise duty (FED) collection was Rs 116 billion as compared to target of Rs 135 billion, and customs duty collection amounted to Rs 152 billion against target of Rs 165 billion.
However, there are doubts about this independence especially where indirect tax is concerned - direct tax reviews are considered to be more credible.
29) The bottom line: any tax that is a direct tax but not a "tax on incomes" must be apportioned to be valid, and the universe of taxes potentially subject to apportionment isn't trivial.
i] = Total taxes or direct tax or indirect taxes; and
For example, if a stock trades at a 10-to-1 price-earnings ratio, a $1 million direct tax savings reflected in earnings per share can enhance stock value by $10 million.
House and Senate Democratic leaders have introduced similar bills to provide long term health care for elderly and disabled Americans paid in large part through a direct tax on cities and towns.
On the other hand, the share of direct tax has gone down to 15.
The Indian finance minister recently presented in parliament the proposed Direct Tax Code (DTC) that eases fears of double taxation and updates the corporate tax rates for foreign companies.
Summary: New Delhi [India], Mar 8 (ANI): The provisional figures of direct tax collections up to February 2018 show that net collections are at Rs.
Corporate income tax (CIT), which is the largest direct tax in most Asia-Pacific developing countries, mobilised 3.

Full browser ?