1, different concepts.
Tax-free income refers to the income that belongs to the taxable income of enterprises, but is exempted from enterprise income tax according to the provisions of the tax law.
Non-taxable income refers to the income that does not belong to the economic benefits brought by the profit-making activities of enterprises in nature and source, does not bear the tax obligation and does not constitute taxable income. Such as financial allocation, administrative fees collected according to law and incorporated into financial management, government funds and other non-tax revenues stipulated by the State Council.
2. Different laws and regulations
According to some provisions of the tax law, tax-exempt income itself constitutes taxable income but is exempted, which belongs to tax preferential items. Specifically, it includes the following four items: debt interest income; Dividends, bonuses and other equity investment income between qualified resident enterprises; Non-resident enterprises set up institutions and places in China, and obtain dividends, bonuses and other equity investment income actually related to the institutions and places from resident enterprises; The non-profit income of qualified non-profit organizations does not include the income obtained by non-profit organizations engaged in profit-making activities.
3. The legal basis is different.
Tax exemption means that the output tax is not levied according to the provisions of the tax law, and the input tax is not deductible and should be transferred out. It is a special provision to encourage, support or take care of some taxpayers or tax recipients, and it is a kind of tax preference widely adopted by countries and taxes all over the world. Tax exemption is a measure that combines the seriousness of taxation with the necessary flexibility.