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What is direct tax? (definition)


Eichiro

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A direct tax is the tax paid by an individual or organization directly to government. A direct tax applies for real property (eg. land, buildings, ect.), personal property (eg.car, furniture, ect.), income and other assets. A direct tax differs from indirect tax because last one applies to the the customer who benefits of goods or services no matter what is his income or property. VAT (value-added tax) is an exemple of indirect tax.

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