Tax deduction


Tax deduction - a special form of tax exemption consisting of either exemption from the tax liability of taxpayers for which the tax base does not exceed a certain size, or the taxpayer is reduced to that amount by taxpayers. In the first situation, taxpayers whose tax status exceeds a certain size do not benefit from the existence of a tax deductible because the tax is based on the entire tax base, and the second taxpayer benefits in the form of a reduction in tax liability.

Bibliography: Władysław Jaworski, Financial and Banking Lexicon, Warsaw 1991, PWE

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