Tax Terms

Tax-Exempt Account

Definition

What is Tax-Exempt Account?

An account whose qualifying income, gains, or withdrawals are exempt from specified taxes.

Example in practice

The investor checks contribution and withdrawal conditions for the exemption.

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Tax deducted at source from specified income payments before the recipient receives the balance.

Tax that may apply to gains from disposing of qualifying assets.

A public authority responsible for administering and collecting taxes.

The possibility of loss because broad market prices or rates move against an investment.

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