7 Taxation vocabulary in English

Key concepts related to taxes in business operations.

income tax – tax levied on the income of individuals or businesses.

corporate tax – tax imposed on the net income of a company.

sales tax – tax on sales of goods and services.

value added tax (VAT) – a consumption tax placed on a product whenever value is added.

withholding tax – tax withheld from employees' wages and paid directly to the government.

tax liability – total amount of tax owed to the government.

tax deduction – expenses that can be subtracted from gross income to reduce taxable income.

tax avoidance – legal strategies to minimize tax liability.

tax evasion – illegal non-payment or underpayment of tax.