tax credit

tax credit
A direct dollar-for-dollar reduction in tax allowed for expenses such as child care and R&D for building low-income housing. Compare tax deduction. Bloomberg Financial Dictionary
Additional amount on dividends paid by a company resident in France to alleviate double taxation. Euroclear Clearing and Settlement glossary
Dividends payments are received in net because companies are required to deduct tax when paying out a dividend. If your rate of tax is lower than the rate paid by the company, then you are allowed to receive the difference as tax credit.

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tax credit tax credit credit1

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tax credit UK US noun [C] TAX
an amount of money calculated according to someone's personal situation that reduces the amount of tax they must pay: »

The tax credit will cost taxpayers $6.4 billion a year by the time all the nation's ethanol plants under construction are completed.

a tax credit for sth »

The bill proposes a 65% tax credit for donations to private scholarship funds.

get/receive/take a tax credit »

The Work Opportunity Tax Credits allows companies to take tax credits between $1,500 and $2,400 for each new employee hired among the eligible groups.


a production/investment/energy tax credit

child/dividend/working tax credits »

Working tax credits are intended to fund childcare when parents return to work.

Compare TAX DEDUCTION(Cf. ↑tax deduction)

Financial and business terms. 2012.

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Look at other dictionaries:

  • tax credit — n: an amount that may be subtracted from the sum of tax otherwise due and that is distinguished from a deduction applied to gross income in the calculation of taxable income compare exemption Merriam Webster’s Dictionary of Law. Merriam Webster.… …   Law dictionary

  • Tax-Credit —   [tæks kredɪt, englisch], ein Abzug von der Steuerschuld, durch den entweder individuellen Verhältnissen Rechnung getragen beziehungsweise spezielle Steuervergünstigungen gewährt werden sollen oder andere Steuern zur Vermeidung einer… …   Universal-Lexikon

  • tax credit — tax credits N COUNT A tax credit is an amount of money on which you do not have to pay tax. The president proposed to provide tax credits to businesses that allow workers time off …   English dictionary

  • Tax credit — The term tax credit describes two different concepts:*The first is a recognition of partial payment already made towards taxes due. *The second is a state benefit paid to employees through the tax system, which has the effect of increasing… …   Wikipedia

  • tax credit — 1) The tax allowance associated with the dividend paid by a company. The shareholder is given allowance for the tax paid at source by the tax credit, at the same rate, 10/90; i.e. a dividend of £90 received by the shareholder had an associated… …   Accounting dictionary

  • tax credit — 1) The tax allowance associated with the dividend paid by a company. The shareholder is given allowance for the tax paid at source by the tax credit, at the same rate, 10 90; i. e. a dividend of £90 received by the shareholder has an associated… …   Big dictionary of business and management

  • tax credit — An amount subtracted from an individual s or entity s tax liability to arrive at the total tax liability. A tax credit reduces the taxpayer s liability dollar for dollar, compared to a deduction which reduces taxable income upon which the tax… …   Black's law dictionary

  • Tax Credit — An amount of money that a taxpayer is able to subtract from the amount of tax that they owe to the government. The value of a tax credit depends on what the credit is being provided for, and certain types of tax credits are granted to individuals …   Investment dictionary

  • tax credit bond — USA A bond whose holders receive, instead of periodic interest and principal payments, US federal income tax credits of up to 100% of the interest amount they would have otherwise received, which they can use to offset their US federal income tax …   Law dictionary

  • tax credit — /ˈtæks krɛdət/ (say taks kreduht) noun a credit received by a taxpayer in relation to certain items of expenditure or income, and deducted directly from income tax otherwise payable …  

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