What is Direct tax?
A '''direct tax''' is a [[tax]] paid directly to the [[government]] by a [[person]] or [[organization]].<ref name=dtINVPD>{{cite web |url=http://www.investopedia.com/terms/d/directtax.asp |title=Direct Tax |publisher=Investopedia, LLC |access-date=24 May 2016}}</ref> A direct tax may not be passed on to another person or [[wikt:entity|entity]] but must be paid by the entity responsible for the tax.<ref>{{cite web |url=http://www.businessdictionary.com/definition/direct-tax.html |title=direct tax |publisher=BusinessDictionary.com |access-date=24 May 2016 |archive-date=14 May 2016 |archive-url=https://web.archive.org/web/20160514081724/http://www.businessdictionary.com/definition/direct-tax.html |url-status=dead }}</ref> A direct tax is different from an indirect tax, which is paid by someone other than the person or entity who would normally be responsible for it.<ref name=differenceWF>{{cite web |url=http://www.investorguide.com/article/11164/the-difference-between-direct-tax-and-indirect-tax-igu/ |title=The Difference Between Direct Tax and Indirect Tax |website=InvestorsGuide.com |publisher=WebFinance, Inc |access-date=24 May 2016 |archive-date=31 May 2016 |archive-url=https://web.archive.org/web/20160531160640/http://www.investorguide.com/article/11164/the-difference-between-direct-tax-and-indirect-tax-igu/ |url-status=dead }}</ref> For [[example]], a tax owed on a piece of [[property]] is a direct tax.<ref name=differenceWF/> A tax on the sale of that property would be considered an indirect tax.<ref name=differenceWF/> == Income tax == An income tax is a tax that governments [[wikt:levy|levy]] on individuals and businesses on their [[income]].<ref name=itINVPDA>{{cite web |url=http://www.investopedia.com/terms/i/incometax.asp |title=Income Tax |publisher=Investopedia, LLC |access-date=24 May 2016}}</ref> In the US and other countries, businesses and individuals need to file an [[Income Tax Return]] every year.<ref name=itINVPDA/> This is to report all forms of income and to see if they owe any tax or can ge