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High Quality Content by WIKIPEDIA articles! Within the Australian, Canadian, United Kingdom, and United States tax systems, a tax credit is a recognition of partial payment already made towards taxes due. A similar concept exists in the French tax system, for example in the Credit Impot Recherche. This situation arises, for example, when standard rate tax has been deducted at source ("withholding tax"), but the tax-payer is subject to further taxation at a higher rate. It also applies in dividend imputation systems.