Examples of direct Taxes

Direct Taxes are taxes imposed on income and properties of individuals and companies where by the impact and incidence of the tax cannot be shifted to a mother party.

Examples of direct taxes

1. Income tax. This is a tax imposed on the incomes of individuals. This tax is progressive in nature that is, the tax rate increases with tax payer’s income.
2. Sur tax. This is the tax imposed on very high incomes exceeding certain limits asset by the tax authorities in a given country. It is aimed at reducing income inequalities among the tax payers.
3. Pay as you earn (PAYE). This is income tax changed on employment income.
4. Wealth (property) tax. This is the tax levied on property or past accumulated savings of individuals.
5. Company (corporate) tax. This is the tax charged on either net or gross profits of the company · It is usually changed as a percentage of profits.
6. Capital gains tax. This is the tax levied on the gains made by the seller of a capital asset whose value has appreciated at the time of sale.
7. Death (Estate) duty. This is the tax levied on the property of deceased person. It is based on   the principle that a person cannot command property rights beyond the term of his/her life. Therefore, society should take part of his or her property in form of taxes.
8. Inheritance tax (duty). This is the tax imposed on property or wealth inherited by a certain person.
9. Land tax. This is the tax imposed basing on the ownership of land. It is aimed at  breaking land monopoly and improving on land tenure system.
10. Gift tax. This is the tax imposed on gifts. The principle on which the tax is levied is that the receiver of the gift has not earned it through hard work.
11. Super profit tax. This is the tax imposed on profits of the company exceeding certain limits as determined by the tax authorities.