Threshold
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1.
A level, rate or amount at which something comes into effect.
For example, if a non-financial counterparty exceeds a threshold of EUR 1 billion in credit derivative contracts, this will trigger mandatory clearing in all asset classes under EMIR.
2. Taxation.
In taxation, a money level where a tax comes into effect, or at which a rate of tax changes.
Tax rates are often higher, on higher levels of income.