3. Tax Accounting

Word

Example

taxable income

The taxable income is calculated after deducting allowable expenses

tax return

The company needs to file its tax return by the end of the month

tax rate

The tax rate for corporate profits has increased this year

tax liability

The tax liability must be settled before the end of the fiscal year

tax deductible

The company can claim the expenses as tax deductible

capital gains tax

Investors must pay capital gains tax when selling assets at a profit

indirect tax

VAT is an example of an indirect tax

direct tax

Income tax is a direct tax that is paid on earned income

tax avoidance

The company has been criticized for its tax avoidance strategies

tax evasion

Tax evasion is illegal and can result in heavy penalties

income tax

Income tax is calculated based on an individual's earnings

taxable period

The taxable period for most businesses is the calendar year

tax credit

The tax credit will reduce the amount of tax owed

withholding tax

The employer is required to deduct withholding tax from the employee's salary

exemption

Certain income types may be eligible for tax exemption

progressive tax

In a progressive tax system, the tax rate increases with higher income

flat tax

Some countries have a flat tax rate for individuals

tax planning

Effective tax planning can help reduce a company's tax burden

tax audit

The government may conduct a tax audit to ensure compliance with tax laws

tax shelter

A tax shelter can help individuals or companies reduce their taxable income

corporate tax

The corporate tax rate in this country is relatively high

tax consultant

The company hired a tax consultant to ensure compliance with tax laws

double taxation

Double taxation can occur when income is taxed both in the country of origin and the country of residence

self-assessment

Under self-assessment, taxpayers must calculate their own taxes and submit them

tax base

The tax base is the total amount of income subject to tax

audit trail

The audit trail allows the tax authorities to track transactions and verify income

tax invoice

The company issued a tax invoice for the goods sold

tax filing deadline

The tax filing deadline for this year is April 30th

income tax return

He filed his income tax return on time to avoid penalties

tax deferral

The company applied for a tax deferral on some of its earnings

tax relief

Tax relief programs can reduce the burden on individuals and businesses

sales tax

Sales tax is added to the price of goods sold to consumers

tax rate schedule

The tax rate schedule provides the applicable rates for different income levels

tax exempt

The charity is tax exempt under local law

tax refund

After filing her taxes, she received a tax refund

taxable event

The sale of property is considered a taxable event

tax debt

The company was unable to pay its tax debt on time

tax bracket

She falls into a higher tax bracket due to her annual salary

taxpayer

The taxpayer must report all sources of income

tax laws

Tax laws vary from country to country, so businesses need to stay informed

tax period

The tax period for reporting income is usually one year

non-resident tax

Non-residents may be subject to different tax rates

withholding tax certificate

The company provided the withholding tax certificate to the employee for tax filing

tax avoidance scheme

The company was investigated for its tax avoidance scheme

taxable transaction

The sale of the land is considered a taxable transaction

tax credit certificate

The tax credit certificate was issued by the tax authority to the company

prepaid tax

Prepaid tax can be used as a credit against future tax liabilities

income tax rate

The income tax rate has been lowered for middle-income earners

tax evasion penalty

The government imposed a tax evasion penalty on the company