Investor Glossary-tax holidayInvestor Glossary-tax holidayInvestor Glossary-tax holidayInvestor Glossary-tax holidayInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Holiday

The HTML to link to this page
 

A tax holiday is a temporary reduction or elimination in taxes that governments offer as an incentive to generate business or otherwise achieve some form of economic stimulus. Developing countries often use the tax holiday concept as a development tool. They may implement a general tax holiday on all corporate taxes to attract foreign investment, or implement a tax holiday on selected industries to boost growth in those industries. In the United States, sales taxes are most often the subject of a tax holiday, particularly during a heavy shopping period. For example, governments may augment the back to school sales that stores hold before the start of a new school year with a tax holiday. There may be some limitation on the scope of a tax holiday however. The tax holiday may target specific kinds of merchandise, such as clothing, school supplies, or computers. Another tax holiday may only apply to merchandise under a specific price point, such as $100. New York State enacted the first tax holiday in 1996.



Rate this Tax Holiday definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, labor relations, APR, in escrow, liquidity ratio, retained earnings, cancelled check, required rate of return, quality assurance, annual return, stock market close, VIX, ex-dividend date, FICO score, implied volatility, limit order, stock split, 1031 exchange, wholly-owned subsidiary, EBITDA, option premium, real GDP, ex-dividend, reverse mortgage, inflation, deferred tax, class C shares, dividends payable, command economy, debt service coverage, irrevocable trust, margin rate, minority interest, balance sheet, per diem, FTSE, 1035 exchange, current ratio, risk management, diluted share, 144a, phantom income, LIBOR, open position, Zero Cost Collar, 401a, covered put, deferred revenue, Key Rate Duration


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use