The first thing we are going to do before entering fully into the explanation of the meaning of the term tax credit is to determine its etymological origin. In this case, it must be stated that the two words that make it up come from Latin.
Thus, we find the fact that credit is a word that emanates from the Latin verb credere that can be established that is synonymous with "believe." On the other hand, the second part of that term, fiscal, comes from the Latin noun fiscus which can be translated as "basket".
The concept of fiscal credit It has several uses, generally linked to different countries. You can refer, for example, to the possibility that a company of reducing taxes which pays in your country through those who paid a foreign government for some international trade operation.
On the other hand, the tax credit is the amount that a company has paid for taxes when purchasing a product or input and that can be deducted before the State at the time of reselling. For example: A shop buys a DVD player and pays it at $ 125, of which 25 correspond to taxes. The next day, the merchant sells that equipment to an end consumer for $ 250 (50 corresponding to taxes). When paying tribute to the State, the merchant will pay 25 dollars of taxes for these transactions, since the remaining 25 can be computed with tax credit for their original purchase.
In other words, it can be said that the tax credit is a amount in money in favor of the taxpayer . When determining the tax obligation, the taxpayer can deduct it from the tax debit (his debt) to calculate the amount to be paid to the State.
In addition to all of the above, it is important that we know that when determining the amount of a tax credit it is essential to take into account a series of parameters, specifically data and figures. Thus, we can determine that this is achieved after establishing the amounts of what are the authorized deductions, of the income received, of the percentage of the corresponding rate and the amount of the result.
He government can implement different programs for the use of tax credit (which, in all cases, will be an amount of money in favor of the taxpayer, which can be a company or a person ). There are plans where the taxpayer can use tax credit to pay for training classes; In this way, the money returns to the State, but the taxpayer receives more services.
In the case of Argentina, we have to make clear that there is what is known as the Fiscal Credit Program for Training. Specifically, it is defined as an instrument that is granted to the different companies and companies of the aforementioned country so that they can obtain reimbursements based on the investments they make in regard to the training of the workers they own.
Specifically, such training can be carried out both through the company's own courses and through activities organized by public institutions.