TAXES

Illegal process of making large amounts of money generated by a criminal activity.

Drug trafficking, terrorist funding.

Illegal activity in which a person or entity deliberately avoids paying a true tax liability.

Not reporting or under reporting income to the tax authorities.

Ia a deduction that lowers a person's or an organization's tax liability by loweting their taxable income.

If you earn $50,000 in a year and make a $1,000 donation to charity during that year, you are eligible to claim a deduction for that donation, reducing your taxable income to $49,000.

It's a tax which the tax rate increases as the taxable amount increases.

Investment icome taxes, rental earning, tax on interest earned.

Is that which is determined by applying the tax or fiscal regulations at the time of preparing the income tax return.

If the taxpayer has an unamortized loss from 2014 of $650,000.00 and until 2020 generates a profit of $500,000.00, and the taxpayer files a tax return for the latter year without applying the 2014 loss, he loses the right to use the loss in subsequent years.

The country or territory in which the level of taxes payable by a non-resident citizen or company is much lower than that considered normal

This list includes Costa Rica, Switzerland, Turkey, among others.

Is a method of lowering taxable income for individuals or compaies

Qualified retirement accounts, certain insurance products, municipal bonds are all examples of potential tax shelters.

Is due only after the investment is sold.

Is 0%, 15% or 20%

Is a tax on the profits of a corporation.

Apply to a corporations incorporated in the country, corporation doing businees, foreign corporation who have a permanent establishment in the country and others.

Consists of accounting practices that follow required laws and regulations, but deviate from what those standards.

Overestimating revenues, delaying, lowering depreciation charges and others.

Is a type of tax charged on goods produced within the country.

Such as fuel, tobacco and alcohol.

Refers to a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction.

Such as fourth category income correspond to services rendered without a relationship of dependency. That is to say, if the person obtains income from independent work, he/she is subject to this income.

A provision in the laws governing taxation that allows people to reduce their taxes.

For example, Flor S.A. used a loophole in the tax code to avoid paying taxes by registering as a charity.

Is a tax or rate that is charged on the acquisition of products and services or on other operations in different countries of the world.

For example, if a product costs $100 plus 15% VAT, the consumer pays the buyer $115. The trader keeps $100 and sends $15 to the government.