1, tax deduction. In other words, tax relief can be achieved by narrowing the tax base. Specific application forms include setting thresholds, exemption amount and allowing inter-period carry-over.
2. Tax rate relief. Is to reduce the tax rate to achieve the purpose of tax reduction.
3. Tax relief. Tax relief is achieved through direct tax relief, including full exemption, half levy, approved reduction rate and approved reduction amount.
Types of tax reduction and exemption, in the practice of tax collection and management in China, there are many cases of tax reduction and exemption, which can be summarized into three main types:
(1) Legal relief, tax reduction and exemption listed in laws and regulations of tax entities. In the basic laws and regulations of each tax, there are generally tax reduction and exemption clauses, and the principles and scope stipulated in these tax reduction and exemption clauses are universal and stable. For example, Chapter 5 of People's Republic of China (PRC) Import and Export Tariff Regulations specifically lists the scope of tax reduction and exemption, such as tax exemption for goods donated by international organizations and foreign governments free of charge. The Provisional Regulations on Value-added Tax in People's Republic of China (PRC) clearly stipulates that agricultural producers are exempt from value-added tax when they produce and sell their own agricultural products, immune drugs and appliances, and used books they sell; Products produced with waste residue, waste liquid and waste gas can be exempted from VAT on a regular basis. The provisions on the threshold and exemption amount in China's current business tax, agricultural tax and income tax law also belong to the scope of legal relief.
(2) Special case reduction. Tax reduction and exemption stipulated in the project. There are two cases of special tax reduction and exemption: first, after the basic laws and regulations of various taxes are determined, new tax reduction and exemption will be carried out with the development and change of political and economic conditions. Second, some cannot or should not be listed in the basic laws and regulations of various taxes, but need to appear in the form of project provisions. The relief provided for in these two projects is usually approved by the State Council or the State Council and authorized by the Ministry of Finance of People's Republic of China (PRC) or the General Administration of State Taxation Administration of The People's Republic of China and Customs. Special relief can be divided into indefinite and limited. For the time-limited relief, the tax will be resumed according to the regulations after the expiration. With the approval of the State Council, the consumption tax on gold and silver jewelry will be reduced from 1 994 and 1 from 65438% to 5%. The Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China 1994 1 1 provides the following provisions for wholesale meat for commercial enterprises. The business of poultry, eggs, aquatic products and vegetables is exempt from value-added tax (take the method of "collecting first and returning later"). The State Council stipulates that donations to non-profit social organizations and state organs in China designated by the State Council that do not exceed 3% of the annual taxable income may be exempted from enterprise income tax with the approval of tax authorities at or above the county level. These social organizations and state organs refer to: China Youth Development Foundation, Hope Project Foundation, Old Area Promotion Association, Disaster Reduction Committee and China Red Cross Society. China Disabled Persons' Federation, National Foundation for the Aged. Other non-profit organizations and state organs approved by the civil affairs department. According to the regulations of People's Republic of China (PRC) Ministry of Finance and State Taxation Administration of The People's Republic of China 1994, newly established independent accounting enterprises or business units are engaged in consulting (including consulting in science and technology, law, accounting, auditing, taxation, etc.), and the information industry and technical service industry are exempted from enterprise income tax for two years from the date of opening.
(3) Temporary tax reduction or exemption is granted with temporary approval in order to take care of taxpayers' production, life and other special difficulties. Taxpayers who have difficulties in paying taxes according to law due to unexpected changes in their production and operation conditions shall be granted tax reduction or exemption after examination and approval in accordance with the provisions of the tax administration authority. Usually it is a regular tax reduction or a one-time tax reduction or exemption. But sometimes temporary tax reduction or exemption is regarded as a special case.
The content of tax reduction and exemption, according to China's current tax law, mainly includes three aspects:
(1) Encourage production relief. In order to improve the level of production technology as soon as possible and promote the upgrading of products, the state gives preferential treatment to reduce or exempt value-added tax on new products listed in the national trial-production plan on a regular basis. In order to encourage enterprises to make full use of products produced by waste materials such as waste residue, waste liquid and waste gas and realize profits, value-added tax and income tax are exempted for a certain period of time. Refund of value-added tax and consumption tax for export products. In order to encourage farmers to reclaim wasteland and expand cultivated land area, China's agricultural tax regulations stipulate that agricultural tax shall be exempted from 1 ~ 3 years from the income year. The Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China 1994 stipulate that technical service business units and enterprises engaged in applying scientific and technological knowledge and extraordinary technology to solve the problems of improving product structure, improving process flow and reducing product cost for producers and operators shall be exempted from enterprise income tax for two years from the date of opening; The income from the transfer of technological achievements, technical training, technical consultation, technical services and technical contracting of scientific research units and universities serving various industries shall be temporarily exempted from enterprise income tax.
(2) social security relief. In order to support social welfare undertakings, organize employment for the disabled, and take care of the practical difficulties in the production and operation of the disabled, the newly established social welfare production units shall be exempted from income tax if they arrange blind, deaf and political personnel to account for more than 35% of the total number of production personnel. If it exceeds 10% and is less than 35%, the income tax will be levied by half, taking care of the actual situation of economic backwardness in the old revolutionary base areas, ethnic minority areas, border areas and poverty-stricken areas. If it is really difficult to pay taxes, tax reduction or exemption will be granted. Some taxes in China have provisions on the threshold and exemption amount, aiming at fulfilling the tax obligation on the basis of maintaining the basic living standard of taxpayers. If it is still difficult to pay taxes according to regulations, it can also be given relief and care.
(3) Natural disaster relief. In case of natural disasters such as wind, fire, water, drought, hail and earthquake. Taxpayers can't get insurance compensation and have difficulty paying taxes. Upon examination and approval by the tax authorities, regular or one-time tax reduction or exemption can be given. China has a vast territory, and the production of agriculture (animal husbandry) is greatly affected by natural conditions, and natural disasters occur to a certain extent every year. According to China's agricultural tax regulations, every year due to water, drought, wind,
Tax reduction and exemption management, tax reduction and exemption is an important means to reflect political, economic and social policies and play a role in tax regulation, and management must be strengthened. Its requirements and contents mainly include:
(1) Unifying understanding, adhering to principles, and reducing or exempting taxes are directly related to the tax burden of national fiscal revenue earners and taxpayers and the development of the national economy. It is a work with strong policy. In our work, we should adhere to the principle of economic development, proceed from the macro-control of the national economy that is beneficial to the country, fully consider the affordability of the national finance, and prevent the loss of tax reduction and exemption. Tax reduction and exemption must have a clear economic purpose, and enterprises that enjoy the care of tax reduction and exemption must ensure that the tax reduction and exemption given are used to effectively solve practical difficulties in production and operation and promote production development.
(2) Do a good job in investigation and study, and carefully review the application. Units and individuals applying for tax reduction or exemption must submit a written report to the competent tax authorities, provide reliable data and explain the reasons for applying for tax reduction or exemption and the purpose of tax reduction or exemption. The competent tax authorities shall examine the application reports submitted by taxpayers item by item, and send personnel to enterprises to master the first-hand information to check whether they meet the conditions for tax reduction or exemption, whether the reasons for requesting tax reduction or exemption are sufficient, and whether the measures that enterprises are prepared to take to increase revenue and reduce expenditure are feasible.
(three) in strict accordance with the provisions of the state tax reduction and exemption management authority. The examination and approval of tax reduction and exemption must be handled in strict accordance with the authority stipulated in the tax management system, and it is not allowed to reduce or exempt taxes without authorization. All localities and departments should seek State Taxation Administration of The People's Republic of China's opinions in advance and report to the State Council for examination and approval if it involves the central tax reduction and exemption management authority. Any tax reduction or exemption documents issued by any region or department beyond its own management authority are invalid, and tax authorities at all levels have the right to refuse to implement them and report them to higher tax authorities. At the time of examination and approval, the application for tax reduction or exemption with large amount and wide influence should be considered collectively, and it is strictly forbidden for individuals to decide on tax reduction or exemption.
(4) Strengthening the management of tax reduction and exemption. After the enterprise's application for tax reduction or exemption is approved, both the tax authorities and the enterprise will strengthen supervision and inspection on the use and management of tax reduction or exemption during the tax reduction or exemption period. Generally, in the form of signing a contract or agreement for the development of production, the tax authorities and enterprises enjoying tax reduction and exemption jointly formulate a target management plan for tax reduction and exemption, and make good use of tax reduction and exemption. Clearly stipulate the amount, duration, use plan and benefit requirements of tax reduction or exemption. Organize and implement effective measures. In the contract or agreement, it is also necessary to clearly stipulate the economic benefit indicators that the enterprise must achieve during the tax reduction or exemption period. Otherwise, the tax authorities have the right to cancel the tax reduction and exemption care in the current year and recover the tax reduction and exemption.
Legal basis:
"People's Republic of China (PRC) tax collection and management law" Chapter 1 Article 3:
The collection and suspension of tax, as well as the reduction, exemption, refund and overdue tax, shall be implemented in accordance with the provisions of the law; Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council. No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.
Chapter III Article 33:
Taxpayers shall reduce or exempt taxes in accordance with the provisions of laws and administrative regulations. Local people's governments at all levels, competent departments of people's governments at all levels, units and individuals who violate the provisions of laws and administrative regulations and make decisions on tax reduction or exemption without authorization are invalid, and the tax authorities will not implement them and report to the higher tax authorities.