Tax deduction
The term tax deduction has different meanings in common parlance and especially in German tax law:
- Withholding tax refers to the taxes that are withheld from the source of income as withholding tax and not, as is usual, levied on the recipient of the income. These taxes are also called withholding taxes . Examples are wage tax and capital gains tax .
- There is a so-called construction withholding tax for construction work . This is a special form of corporation or income tax regulated in German tax law.
- The input tax paid reduces the tax burden when determining the VAT liability. The amount is therefore also called input tax deduction.
- Generally speaking, business expenses and special expenses that can be used to reduce income tax are referred to as tax deductions.
Individual evidence
- ↑ tax deduction . In: www.steuerk Klassen.com . Accessed August 31, 2018.
- ↑ tax deduction . In: Gabler . Accessed August 31, 2018.