Tax Deferment
/ˈtæks dɪˈfɜːrmənt/
Definitions
- (n.) The legal allowance to postpone payment of taxes to a later date, often used to manage financial obligations without immediate tax liability.
The company applied for tax deferment to improve its cash flow during the fiscal year.
Forms
- tax deferment
Related terms
See also
Commentary
Tax deferment is distinct from tax exemption; it delays tax payment rather than absolving it. Legal instruments should clearly specify deferment terms to avoid penalties.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.