Audit

It is an official examination that is done to check a company’s financial records to confirm that an individual or organisation has paid their taxes. 

Capital Gain

It refers to the money you gain when you sell an asset at a higher price than you originally paid for it. For example: If you buy a stock at 200 USD you can sell it at 250  USD then the capital gained will be 50 USD. 

Corporation Tax

It is a tax imposed on the profit of a business, and the rate will vary depending on the country you live in. For example: If a company gains a profit of 200,000 MUR, he will have to pay 40,000 MUR of tax.

Cost Recovery

The capacity of firms to recoup the costs of their investment.

Deductions

A deduction is a decrease in a taxpayer’s gross income, this will reduce the amount of money that a business or individual has to pay. 

Double Taxation

Double taxation happens when the same income is taxed twice, either a business taxes its earnings and then adds a tax on the dividends distributed to shareholders or an individual income is taxed both in his home country and abroad.

Depreciation

Depreciation refers to the steady decline of assets such as machinery or vehicles brought by a company by usage or other issues, over time their financial value declines. 

Exemption

An exemption can be seen as a particular arrangement or exclusion that can lessen or completely eliminate tax imposed on an individual or organisation.

Excise Tax

Excise taxes are usually put on specific products such as Alcoholic drinks, cigarettes, and petrol. 

Foreign direct investment (FDI)

This happens when an investor becomes a long-term stakeholder in a business located abroad, thus contributing to the global economy of a country.

Fixed Assets 

Fixed assets is a company’s long-term assets such as buildings, equipment, machinery. 

Gross Income

It refers to the amount of money received either by a corporation or business before any deduction is made. It covers all forms of income from salaries to dividends.

Indirect Tax

An indirect Tax can be imposed on an individual or a group of people such as manufacturers then transferred to someone else, typically the consumer. This tax is collected by a merchant and imposed on products and services.

Inflation

The rise in price of products and services due to political instability in a country, war, or terrorism, which affects import and export.

Inheritance Tax

when an individual dies a tax is imposed on either property or the assets that have been passed on to the heirs.

Refund

In case someone has overpaid a reimbursement of the exceeded amount will be given to them.

Tax credits

When you receive a tax credit a person’s government tax is decreased. It is similar to receiving a dollar-for-dollar tax reduction, which might reduce your overall tax liability or perhaps earn you a refund if the credit exceeds your outstanding balance.  

Tax Avoidance

It is the legal practice of structuring financial matters to reduce tax duty by taking advantage of credits, deductions, which are allowed by tax legislations.

Taxable income

Taxable income refers to the total amount of money that is subject to taxation after deductions. 

Tariff 

These are imposed taxes that a government puts on imported products.