direct tax

Definition

A tax levied by the government directly on the income or property of individuals or businesses. Direct taxes are different from indirect taxes, which are levied at the point of certain actions such as purchasing in the case of sales tax, importing in the case of customs duties, or production in the case of excise taxes.

Use direct tax in a sentence

You may want to know exactly how much the direct tax will be so that you can factor it in to what you will pay.

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The direct tax was expected so despite the large amount of tax paid we had an account that was able to pay the tax amount.

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In addition to income tax and sales tax, we still have to pay a over $20,000 in direct tax on the income that we earned during the last fiscal year.

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Direct Stock Purchase Plan direct taxation