What is the difference between a zero tax rate and a tax exemption?

Regarding the difference between "zero tax rate" and "tax exemption", many people often confuse the two concepts. Regarding the difference between the two, for tax increases, to put it simply, tax exemption is only that the sales link does not pay VAT, but the purchase link still has to pay VAT, while the zero tax rate means that the sales do not pay VAT, and the purchase link can also give you a tax refund, so the zero tax rate is lower than the tax exemption.

In addition, the zero rate is a bracket of VAT rate, which can be applied as long as it meets the requirements of the document, without the need for approval or filing by the tax authorities. Tax exemption, on the other hand, is a tax preference, which needs to be approved by the tax authorities or filed with the tax authorities in accordance with the relevant requirements of tax preferential management. Therefore, the approval procedures and procedures required for the two are also different.

Legal basis: Article 21 of the Tax Law.

When calculating the taxable income, if the financial and accounting treatment of the enterprise is inconsistent with the provisions of the tax laws and administrative regulations, it shall be calculated in accordance with the provisions of the tax laws and administrative regulations.

A zero tax rate is different from a tax exemption. Taking goods as an example, the tax exemption for export goods only means that no VAT is levied in the export link; Zero tax rate means that in addition to the export goods in the export link is not subject to VAT, but also the product has been paid before the export of the VAT refund, so that the export product is completely free of VAT tax at the time of export, so as to enter the international market as a tax-free product.

Regarding the difference between "zero tax rate" and "tax exemption", many people often confuse the two concepts.

[Legal Analysis].1. The nature is different.

Taxpayers are obliged to pay taxes on the sale of zero-rated goods in accordance with the tax law, but since the prescribed tax rate is zero, taxpayers do not have to bear the tax. Tax exemption means that the state exempts taxpayers from the obligation to pay taxes according to the needs of the policy.

2. The form is different.

Since taxpayers have tax obligations on the sale of zero-rated goods, they also have the right to deduct the tax amount, which is formally manifested as a refund to the taxpayers who have paid the taxes in each circulation link. The tax exemption stipulates that the taxpayer is exempted from the obligation to pay taxes, and at the same time, it also stipulates that the production and sale of tax-exempt goods shall not be deducted from the input tax, that is, the taxpayer must give up the right to deduct the tax.

[Legal basis].Law of the People's Republic of China on the Administration of Tax Collection

Article 1 This Law is enacted for the purpose of strengthening the administration of tax collection, standardizing the collection and payment of taxes, safeguarding state tax revenues, protecting the legitimate rights and interests of taxpayers, and promoting economic and social development.

Article 2 This Law shall apply to the collection and administration of all kinds of taxes levied by the taxation authorities in accordance with the law.

Article 3 The levy and suspension of taxation, as well as tax reduction, exemption, tax refund and tax compensation, shall be carried out in accordance with the provisions of the law; Where the law authorizes ***, it shall be implemented in accordance with the provisions of the administrative regulations formulated by ***.

No organ, unit, or individual may violate the provisions of laws and administrative regulations by making decisions on tax deficiency or the levy or suspension of tax collection, tax reduction, tax exemption, tax refund, tax deficiency payment, or other decisions that contradict tax laws and administrative regulations.

Article 4 Units and individuals that are liable to pay taxes as stipulated by laws and administrative regulations are taxpayers.

Units and individuals that are required by laws and administrative regulations to withhold and remit, collect and remit taxes are withholding agents. Taxpayers and withholding agents must pay, withhold, collect and remit taxes in accordance with the provisions of laws and administrative regulations.

The above is only the current information combined with my understanding of the law, please refer to it carefully!

If you still have questions about this issue, it is recommended that you organize the relevant information and communicate with a professional in detail.

The difference between zero tax rate and tax exemption is that the concept is different and the applicable time is different. The specific concepts are different:

1. Zero tax rate: a type of VAT rate, which is mainly applicable to taxpayers' export goods and cross-border taxable behaviors. When calculating and paying VAT, the output tax is calculated at a rate of 0%, and the input tax is allowed to be deducted;

The specific application time is different:

1. Zero tax rate: If a taxpayer sells services that are subject to zero VAT rate or intangible assets are searched for large estate, he or she may waive the application of zero VAT rate and choose to be exempt from tax or pay VAT according to regulations. After waiving the application of the zero VAT rate, no further application for the application of the zero VAT rate shall be made within 36 months;

2. Tax exemption: If a taxpayer is subject to tax exemption and tax reduction provisions for taxable behaviors, he or she can waive the exemption and tax reduction and pay VAT according to the regulations. After giving up tax exemption or tax reduction, you cannot apply for tax exemption or reduction again within 36 months.

Administrative Measures for Tax Refund (Exemption) of Taxable Services Applicable to Zero-rated Value-Added Tax".

Article 3. The scope of application of zero-rated VAT taxable services shall be implemented in accordance with the provisions of the Ministry of Finance and the State Administration of Taxation.

The transportation services of each flight segment or segment corresponding to the waybill, bill of lading or ticket with the origin or end point outside the country are international transportation services.

The transportation services of each flight segment or section corresponding to the waybill, bill of lading or ticket with the origin or end in Hong Kong, Macao and Taiwan belong to the transportation services of Hong Kong, Macao and Taiwan.

The transportation of passengers or goods from China to areas and places under special supervision of domestic customs, the transportation of passengers or goods from areas and places under special supervision of domestic customs to other regions of China or areas and places under special supervision of domestic customs, as well as the R&D services and design services provided to units in areas and places under special supervision of domestic customs, are not within the scope of application of zero-rated taxable services.

The difference between zero tax rate and tax exemption is as follows:

1. In terms of input tax, if you choose to be exempt from tax, then even if the input tax amount of the special VAT invoice obtained cannot be deducted, if the tax rate is 0, in order to ensure that the final tax burden is 0, the VAT paid by the special VAT invoice obtained at the time of purchase can also be deducted;

2. Tax. Zero tax rate means that when calculating and paying VAT, the output tax is calculated at a rate of 0%, and the input tax is allowed to be deducted; The tax exemption in VAT only exempts the tax of a certain production and circulation link, and the tax of other links cannot be exempted, and the input tax is not allowed to be deducted;

3. Accounting. If the zero-rated tax rate is implemented, the input tax is allowed to be deducted, which involves the refund of the input tax; The input tax is not allowed to be deducted, and the input tax is directly included in the cost of the goods in the accounting.

[Legal basis].Article 4 of the Individual Income Tax Law of the People's Republic of China.

The following personal income is exempt from individual income tax:

1) Prizes in science, education, technology, culture, health, sports, environmental protection, etc. issued by provincial-level people's ** and *** ministries and commissions, units at or above the army level of the Chinese People's Liberation Army, as well as foreign organizations and international organizations;

2) Interest on treasury bonds and financial bonds issued by the state;

3) Subsidies and allowances issued in accordance with the uniform provisions of the State;

4) Welfare expenses, pensions, and relief funds;

5) Insurance indemnity;

6) Transfer, demobilization and retirement allowances for servicemen;

7) Settling-in allowance, retirement allowance, basic pension or retirement allowance, retirement allowance, and retirement allowance paid to cadres and employees in accordance with the uniform provisions of the state;

8) The income of diplomatic representatives, consuls** and other personnel of embassies and consulates in China who are exempt from tax in accordance with relevant laws and regulations;

9) Income exempted from tax as stipulated in international conventions and agreements signed by China**;

10) Other tax-exempt income as stipulated in ***.

The tax exemption provisions in item 10 of the preceding paragraph shall be reported to the Standing Committee of the National People's Congress for the record.

Legal analysis: 1. The zero tax rate is that when calculating and paying VAT, the output tax is calculated at a rate of 0%, and the input tax is allowed to be deducted.

Tax exemption is the tax exemption in the value-added tax, which only exempts the tax of a certain production and circulation link, and the tax of other links cannot be exempted, and the input tax is not allowed to be deducted.

2. Accounting: zero tax rate: the input tax amount of the zero tax rate is allowed to be deducted, involving the refund of the input tax amount.

Tax exemption: The input tax is not allowed to be deducted, and the input tax is directly included in the cost of the goods in accounting.

3. Management: Zero tax rate: Zero tax rate is a tax rate of value-added tax, as long as it meets the requirements of the document, the zero tax rate can be applied without the approval or filing of the tax authorities.

Legal basis: Article 31 of the Law of the People's Republic of China on the Administration of Tax Collection and Collection Taxpayers and withholding agents shall pay or release taxes in accordance with the provisions of laws and administrative regulations or the time limit determined by the tax authorities in accordance with the provisions of laws and administrative regulations. If a taxpayer is unable to pay the tax on time due to special difficulties, the taxpayer may postpone the payment of the tax with the approval of the State Taxation Bureau and the local taxation bureau of the province, autonomous region or municipality directly under the Central Government, but the maximum shall not exceed three months.