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LSDefine
Simple English definitions for legal terms
surtax
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A quick definition of surtax:
A surtax is an extra amount of money that people or entities have to pay on top of their regular taxes. It is a way for the government to collect more revenue. Taxes are charges that the government imposes on people, entities, transactions, or property to raise money for public needs. Taxes can take many forms, such as duties, imposts, and excises, and can be paid in different ways, not just with money.
A more thorough explanation:
A surtax is a type of tax that is added on top of an existing tax. It is an additional charge imposed by the government on persons, entities, transactions, or property to yield public revenue.
- If the government imposes a 10% tax on income, and then adds a 5% surtax on top of that, the total tax rate would be 15%.
- In some countries, there is a surtax on luxury goods, such as expensive cars or jewelry.
These examples illustrate how a surtax is an additional charge on top of an existing tax. It is used by governments to increase revenue and can be applied to different types of taxes, such as income tax or sales tax.