Taxes, tax-related vocabulary 1

📚 Key vocabulary
taxable income — the portion of income on which taxes are calculated, after allowable deductions and exemptions
withholding tax — income tax deducted directly from an employee's wages before they receive payment
tax deduction — an expense that reduces taxable income, thereby lowering the amount of tax owed
tax credit — a direct reduction in the amount of tax owed, more valuable than a deduction of the same amount
VAT (Value Added Tax) — a consumption tax levied at each stage of production or distribution, passed on to the final consumer
corporate tax — a tax levied on a company's profits by the government
audit (tax) — an official examination of an individual's or company's tax return by a government authority
capital gains tax — a tax on the profit from selling an asset such as shares, real estate, or a business
tax haven — a jurisdiction with very low tax rates that attracts businesses and individuals seeking to reduce tax liability
double taxation — the taxation of the same income twice, often applied when multinational companies operate across jurisdictions