Question Tag: Tax Holiday

i) Tax Holiday:
A tax holiday is a temporary reduction or elimination of a tax. Tax holidays may be granted by the government at national, regional, or local levels to attract foreign direct investment or stimulate growth in selected industries.
(1.5 marks)

ii) Tax Exemptions:
Tax exemption refers to a statutory exception that removes particular revenue items or classes of people from taxation. It may offer complete relief from tax, tax at a reduced rate, or tax on only a portion of the items subject to tax.
(1.5 marks)

iii) Tax Relief:
A tax relief is a deductible allowance approved by law to reduce taxable income and lessen the tax burden. Personal circumstances are always considered when allowing tax reliefs.
(1.5 marks)

iv) Tax Rebate/Refund:
A tax rebate is a partial refund of taxes already paid, or it may be an amount deducted from the taxes owed. It often involves the government sending back a portion of the taxes already paid by the taxpayer.
(1.5 marks)