Monday, March 18, 2013

Lesson-5 on Tax



Question: What is Tax-Free Zone ?  
Answer:
Area within the territory of a country in which customs duties and other types of indirect taxes are not applied.

Question: What is Tax Haven ?
Answer:
Tax haven in the "classical" sense refers to a country which imposes a low or no tax, and is used by corporations to avoid tax which otherwise would be payable in a high-tax country. According to OECD report, tax havens have the following key characteristics; No or only nominal taxes; Lack of effective exchange of information; Lack of transparency in the operation of the legislative, legal or administrative provisions.

Question: What is Tax Holiday?
Answer:
 A tax holiday offers a period of exemption from income tax for new industries in order to develop or diversify domestic industries.

Question: What is Tax Threshold ?
Answer:  
Level (of income, capital, sales, etc.) at which tax commences to be levied.

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