Legal Definitions - stamp tax

A stamp tax is a type of tax imposed by the government on various transactions, entities, properties, or individuals to generate public revenue. It is a monetary charge that can be paid in different forms, not necessarily in cash.

• Accrued tax: A tax that has been incurred but not yet paid or payable.
• Accumulated-earnings tax: A penalty tax imposed on a corporation that has retained its earnings to avoid income-tax liability arising once the earnings are distributed to shareholders as dividends.
• Admission tax: A tax imposed as part of the price of being admitted to a particular event.

These examples illustrate how stamp taxes can be applied to different situations. For instance, accrued tax is a tax that has been incurred but not yet paid, while accumulated-earnings tax is a penalty tax imposed on corporations that retain their earnings to avoid income-tax liability. Admission tax, on the other hand, is a tax imposed on individuals attending a particular event.