What Is a VAT Exemption?

Tax exemption refers to the exemption of certain taxes payable by certain taxpayers or tax items within a fixed period. The exemption period, taxpayer exemption, and exemption items are determined based on the socioeconomic situation at the time. Tax exemptions are divided into partial exemptions and full exemptions. Partial exemption is the exemption of part of the tax payable by the taxpayer or tax item; full exemption is the exemption of the entire taxable amount. This is called "tax reduction or exemption" in China's tax practice. The two most common types of tax exemptions are tax and excise tax exemptions and income tax exemptions. The tax exemption of customs duties and goods tax can reduce the price of products, while reducing the production costs of enterprises and increasing the consumption of products by residents; the tax exemption of income taxes can stimulate investment and economic development on the one hand, and promote some Realization of social policies and stabilization of social order. ^[1]

Tax exemption

Right!

Tax exemption refers to the exemption of certain taxes payable by certain taxpayers or tax items within a fixed period. The exemption period, taxpayer exemption, and exemption items are determined based on the socioeconomic situation at the time. Tax exemptions are divided into partial exemptions and full exemptions. Partial exemption is the exemption of part of the tax payable by the taxpayer or tax item; full exemption is the exemption of the entire taxable amount. This is called "tax reduction or exemption" in China's tax practice. The two most common types of tax exemptions are tax and excise tax exemptions and income tax exemptions. The tax exemption of customs duties and goods tax can reduce the price of products, while reducing the production costs of enterprises and increasing the consumption of products by residents; the tax exemption of income taxes can stimulate investment and economic development on the one hand, and promote some Realization of social policies and stabilization of social order. ^[1]

As for the exemption period and tax exemption items,

Tax exemptions have two implications:

1. Refers to the provisions on special tax exemptions for diplomatic institutions and diplomatic personnel in accordance with international conventions. China's Personal Income Tax Law and Related

Under the provisions of international conventions, in order to ensure and facilitate the diplomatic representation, diplomatic representation and

The 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations stipulate that embassies, consulates, and curators' residences are exempt from taxes; the embassies and consulates are exempt from taxes on official duties and fees ; Diplomatic representatives, consular officials, staff of the embassy, and employees of the embassy (non-resident nationality) and those who form the same account with them shall be exempt from all taxes levied on persons or things. However, there are a series of exceptions, such as the exemption does not include indirect taxes, service charges, and property-related taxes, inheritance taxes, inheritance taxes, capital taxes, mortgage taxes, registration taxes, court fees, and stamp duties. In terms of customs duties, all official supplies of embassies and consulates, personal supplies of diplomatic representatives, consular officials, or family members who form the same hukou with them, and items shipped by embassy and consular staff upon their first appointment are exempt from all duties and storage. All charges other than the cost of shipping, shipping and similar services. However, the amount of consumer goods exempted from customs duties cannot exceed the quantity directly required by me.

In July 1952, China promulgated the Interim Measures of the People's Republic of China on the Exemption of Taxes and Fees from Diplomats and Consular Officers of Various Countries, which made specific provisions on personnel, taxes and applicable principles that enjoy tax exemption. In the 1970s, China acceded to the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations and entered into force on December 26, 1975 and August 1, 1979, respectively.