Quote:
Originally Posted by masaegu
税額控除 （ぜいがくこうじょ）
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Question about that: I've noticed that "tax deduction" and "tax credit" can both be said 税額控除, but 控除 can be both "credit" and "deduction."
These are not the same thing in the US (and maybe all of the English-speaking world?). Suppose you make $30,000 and have a $3,000 tax bill because the tax rate is 10%. A tax credit of $1,000 would make your tax bill $2,000 by taking that credit right off the tax you owe.
However, a tax deduction of $3,000 would mean you take it off your total income
before calculating the 10% tax owed. So $30,000 - $3,000 = $27,000. 10% of that is $2,700, which is your tax bill.
So tax credits are subtracted after the %, and tax deductions are subtracted before the %.
Is there such a distinction in Japan? I don't see one made in Eijiro (ALC), and Wikipedia's entry for "tax credit" has no link to a Japanese article.
Thanks.