Distinguishing between Direct and Indirect Taxes: Provide an Example of Each Differentiating Direct Taxes from Indirect Taxes Give an illustration of each: Let’s gain some tax knowledge. Taxes come in two flavors: direct and indirect. Direct taxes are those that the taxpayer pays to the government straight away. These fees cannot be transferred to any other individual or organization. Taxes that can be transferred to another company or person are known as indirect taxes. They are typically levied against a producer or supplier, who subsequently passes the tax on to the buyer.
Watch a quick explanation on direct vs indirect taxes
Did you know: The most common example of an indirect tax is the excise tax on cigarettes and alcohol. Value-Added Taxes (VAT) are also an example of an indirect tax.
Examples of Direct Tax
- Income Tax
- Corporation Tax,
- Property Tax, Inheritance Tax, and
- Gift Tax
Examples of Indirect Taxes
- Sales tax
- Excise tax
- Customs tax
- Gas tax
List of payable taxes in South Africa
- Advertisement -
