Direct Tax

Direct Tax
A tax that is paid directly by an individual or organization to the imposing entity. A taxpayer pays a direct tax to a government for different purposes, including real property tax, personal property tax, income tax or taxes on assets. Direct taxes are different from indirect taxes, where the tax is levied on one entity, such as a seller, and paid by another, such a sales tax paid by the buyer in a retail setting.

A direct tax cannot be shifted to another individual or entity. The individual or organization upon which the tax is levied is responsible for the fulfillment of the tax payment. Indirect taxes, on the other hand, can be shifted from one taxpayer to another.

Investment dictionary. . 2012.

Look at other dictionaries:

  • direct tax — ➔ tax1 * * * direct tax UK US noun [C or U] TAX ► a tax on income, rather than on goods or services that are bought: »The government has lowered direct tax rates for individuals and companies. direct taxation noun [U] ► TAX » …   Financial and business terms

  • Direct tax — Direct Di*rect , a. [L. directus, p. p. of dirigere to direct: cf. F. direct. See {Dress}, and cf. {Dirge}.] 1. Straight; not crooked, oblique, or circuitous; leading by the short or shortest way to a point or end; as, a direct line; direct means …   The Collaborative International Dictionary of English

  • direct tax — n: a tax imposed on a taxpayer himself or herself or on his or her property compare excise Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. direct tax …   Law dictionary

  • direct tax — direct taxes N COUNT A direct tax is a tax which a person or organization pays directly to the government, for example income tax …   English dictionary

  • direct tax — n. a tax levied directly on the person by whom it is to be paid, as an income tax or inheritance tax …   English World dictionary

  • direct tax — direct′ tax′ n. bus a tax, as an income or property tax, exacted directly from the persons who will bear the burden of it • Etymology: 1785–90, amer …   From formal English to slang

  • direct tax — ► NOUN ▪ a tax, such as income tax, which is levied on the income or profits of the person who pays it …   English terms dictionary

  • Direct tax — Taxation An aspect of fiscal policy …   Wikipedia

  • direct tax — noun a tax paid directly by the person or organization on whom it is levied • Hypernyms: ↑tax, ↑taxation, ↑revenue enhancement * * * diˌrect ˈtax f95 [direct tax direct taxation] …   Useful english dictionary

  • direct tax — UK / US noun [countable/uncountable] Word forms direct tax : singular direct tax plural direct taxes economics a tax collected directly from a person or organization rather than as part of the price of a product or service Derived word: direct… …   English dictionary

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