Direct and Indirect Taxes

Direct taxes are paid by individuals directly from income earned or on the value assets owned to the income tax department.

Types of Direct Taxes

Income Tax – This is a tax on earned income- individuals pay a percentage of their income.

Corporate Tax

This is a tax on the profits of companies

 Capital Gains Tax

This is a tax on the proceeds resulting from the sale of assets, e.g. houses, land etc.

Capital Transfer and Estate Duties

This is a tax on the transfer of property (gifts) and on legacies (death duties)

Other Direct Taxes

These include: stamp duties, motor vehicle duties land taxes, etc.

Indirect taxes are paid to the income tax department through the suppliers of goods and services. These taxes are levied on consumption and therefore are paid by individuals when purchasing commodities.

Value Added Tax (Ad Valorem Tax)

This is the tax levied on goods as each stage of production. This tax generally is known as a General Consumption Tax (G.C.T.).

Purchase Tax

This tax is placed on specific goods at retail outlets. Theses include gasoline, tobacco, rum etc.

Excise Duties

A tax placed on goods manufactured within a country. This tax is paid by the manufacturer of the product.

Customs Duties

This is a tax on imports i.e. goods entering the country.

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