A Tax Credit is the sum deducted from the total amount a taxpayer owes to the state or federal Government.
A Tax Credit may be granted for various types of taxes, such as an income tax, property tax or value added tax (VAT). It may be granted in recognition of taxes already paid, as a subsidy, or to encourage investment or other behaviours. In some systems tax credits are 'refundable' to the extent they exceed the relevant tax. Tax systems may grant tax credits to businesses or individuals, and such grants vary by type of credit.
Income tax systems often grant a variety of credits to individuals. These typically include credits available to all taxpayers as well as tax credits unique to individuals. Some credits may be offered for a single year only.
Many systems offer various incentives for businesses to make investments in property or operate in particular areas. A Tax Credit may be offered against income or property taxes, and are generally non-refundable to the extent they exceed taxes otherwise due. The credits may be offered to individuals as well as entities. The nature of the credits available varies highly by jurisdiction.
Payroll Tax Accounting can be complex and time consuming, but with the right know-how it can be much simpler. We offer these services on a case-by-case basis, costed according to complexity. B B Whitehouse Group offer Tax Services to Brisbane, Toowoomba and all over Australia. To learn more about Tax Credits or Payroll Tax Accounting, just phone us and talk to one of our Accountants.