When handling tax declarations during business operations, in some cases you may encounter “tax-free”, “no-tax” or “zero-tax” situations.

Although tax exemption, no taxation and zero tax rate all belong to the category of not having to pay tax, there are specific differences between the three.

So, what do these three refer to?

What are the differences?

The following article will help you understand this!

What is the difference between tax-free, non-taxable and zero-rated?

In fact, tax exemption, no tax and zero tax are completely different.

Conceptually, the differences are mainly reflected in: 1. Tax exemption refers to a tax policy whereby the government or government agencies reduce or exempt people and enterprises from bearing certain tax burdens.

Generally speaking, tax exemption policies are implemented on enterprises and individuals, and are often used to encourage enterprise development and increase personal income, thereby promoting economic and social development.

Generally speaking, the significance of the tax exemption policy is to stimulate the development of enterprises, increase personal income, promote economic and social development, promote the development of the labor market towards high quality and efficiency, improve development efficiency, improve public services, and increase economic benefits.

2. Non-taxable non-taxable income refers to income that does not belong to the economic benefits brought by the company’s profit-making activities in nature and origin, does not bear tax obligations, and is not regarded as a component of taxable income.

Such as fiscal appropriations, administrative fees collected in accordance with the law and included in financial management, government funds, and other non-taxable income stipulated by the State Council.

3. Zero tax rate Zero tax rate is a tax rate represented by zero, which is used to represent certain tax objects and tax objects in a specific link.

A zero tax rate means that the taxpayer does not pay taxes on the taxable objects in this link, and must also refund the taxes transferred in previous links, in order to achieve a zero tax rate.

Zero tax rate applies to the following areas, including international transportation services, space transportation services, and the following services provided to overseas units that are completely consumed overseas (such as research and development services, contract energy management services, design services, and circuit design and testing services, etc.).

Among them, the value-added tax is zero-rated for the export of products, that is, taxpayers can not collect value-added tax on export products. The purpose is to encourage exports so that our export products can participate in the international market at excluding tax prices.

into competition.

The above is the specific answer to the question "What is the difference between tax exemption, no tax, and zero tax rate?"