What Are the Different Types of Tax Waivers?

Tax concessions refer to the measures used by the state in tax laws and administrative regulations to provide a certain part of certain enterprises and taxation objects with the purpose of reducing or exempting the tax burden. The tax preferential methods for corporate income tax stipulated by the tax law include tax exemption, tax reduction, additional deduction, accelerated depreciation, deduction of income, tax credit, etc. ^[1]

Tax incentives

In the past, people generally thought that taxes were only a tool for the government to obtain fiscal revenue, but with the development of the economy,

Choice of registration place

China has developed a series of different regions

It is a common way for enterprises to implement tax planning by using tax preferential policies to obtain tax benefits to maximize profit after tax. Due to the complexity of tax preferential policies and the high requirements for application, the expected tax benefits and planning costs brought about by different preferential policies and the impact on total after-tax profits are different.

1. When applying multiple tax preferential policies, a comparative analysis must be conducted and a choice made after comprehensive balance

The focus of tax preferential policy planning is based on its own situation and the current tax preferential policies.

International coordination of preferential tax policies is an important part of maintaining the world economic order and improving the tax systems of various countries. If the country's preferential tax policies are implemented in different ways and are not coordinated internationally, practice will prove to have the following consequences: weakening the effectiveness of tax preferential policies; distorting international competition and disrupting economic order; and restricting the implementation of domestic tax policies.

1. The main contents involved in international coordination of tax preferential policies and their general models

(1) International coordination of preferential tax policies has all-round characteristics, which involves

Starting from October 1, 2018, the Ministry of Finance, the State Administration of Taxation, the Ministry of Commerce, and the General Administration of Customs have jointly issued a document stating that goods exported by cross-border e-commerce comprehensive test areas to e-commerce export enterprises without valid purchase certificates must also meet the following If conditions permit, try out the VAT and consumption tax exemption policies.

First, the e-commerce export company is registered in the comprehensive test zone, and the export date, goods name, unit of measure, quantity, unit price, and amount are registered on the cross-border e-commerce online comprehensive service platform in the registration place. Second, the export goods shall go through the e-commerce export declaration formalities through the customs of the place where the comprehensive test area is located. Third, the export goods are not goods that the Ministry of Finance and the State Administration of Taxation have decided to cancel the export tax refund (exemption) according to the decision of the State Council.

The notice clearly states that the General Administration of Customs regularly transmits the electronic information of the e-commerce export commodity declaration list to the State Administration of Taxation. The taxation authorities of the comprehensive test zones shall strengthen the duty-free management of export goods based on the electronic information of the export commodity declaration lists sorted out by the State Administration of Taxation.

The notice pointed out that the specific tax exemption management measures should be formulated by the provincial tax department's commercial finance and commerce departments. The offices of the construction pilot groups of the comprehensive test zones and the competent commercial departments shall coordinate and promote the communication and cooperation between the departments and the implementation of relevant policies, accelerate the establishment of an e-commerce export statistical monitoring system, and promote the healthy and rapid development of cross-border e-commerce. ^[2]

On March 5, 2019, Li Keqiang made a government work report that strengthened inclusive support and implemented tax incentives for small-scale taxpayers to increase the VAT threshold from monthly sales of 30,000 yuan to 100,000 yuan. ^[3]

In November 2019, the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs issued the "Announcement on Preferential Tax Policies for the Beijing 2022 Winter and Paralympic Winter Games" to support the preparation of the Beijing 2022 Winter and Paralympic Winter Games In its test match, related entities, enterprises and individuals enjoy a series of tax exemptions such as corporate income tax and value-added tax. ^[4]