- 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.
* * *tax credit tax credit ➔ credit1
* * *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 creditchild/dividend/working tax credits »
Working tax credits are intended to fund childcare when parents return to work.
Financial and business terms. 2012.
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 — /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 … Australian English dictionary
tax credit — A credit against income tax itself, as distinguished from a deduction which applies only to reduce the income. The sum owing a taxpayer for overpayment. Internal Revenue Code § 6402(a) … Ballentine's law dictionary