Zero tax rate does not mean tax exemption. The difference between them is: (1). Taxpayers have the obligation to pay taxes when selling goods with zero tax rate, but because the tax rate is zero, taxpayers have no tax to pay. Tax exemption means that the state exempts taxpayers from paying taxes according to the needs of policies. (2) Since taxpayers have the obligation to pay taxes when selling goods with zero tax rate, they also have the right to deduct the tax amount, which is manifested in the form of returning the tax paid by taxpayers in various circulation links. Tax exemption stipulates that taxpayers are exempted from paying taxes, and at the same time, it also stipulates that the production and sale of duty-free goods shall not be deducted from the input tax, that is, taxpayers must give up the right to deduct taxes.

Legal basis: individual income tax law

Article 4 The following incomes shall be exempted from individual income tax:

(a) science, education, technology, culture, health, sports, environmental protection and other aspects of the bonus. Awarded by the provincial people's government, the State Council ministries and commissions, China People's Liberation Army units at or above the military level, foreign organizations and international organizations;

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

(3) Subsidies and allowances issued in accordance with the unified provisions of the state;

(four) welfare funds, pensions and relief funds;

(5) Insurance compensation.

(6) Demobilized soldiers, demobilization fees and pensions;

(7) Resettlement fees, resignation fees, basic pension or retirement fees, resignation fees and retirement living allowances paid to cadres and workers in accordance with the unified provisions of the state;

(8) Income from diplomatic representatives, consular officials and other personnel of embassies and consulates in China who should be exempted from tax according to relevant laws;

(9) Income exempted from tax as stipulated in international conventions and agreements signed by the Government of China;

(ten) other tax-free income stipulated by the State Council.

The tax exemption provisions in Item 10 of the preceding paragraph shall be reported by the State Council to the NPC Standing Committee for the record.

Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax

Article 2 VAT rate:

(1) Unless otherwise specified in items 2, 4 and 5 of this article, the tax rate of taxpayers selling goods, services, tangible movable property leasing services or imported goods is 17%.

(2) Taxpayers sell transportation, postal services, basic telecommunications, construction and real estate leasing services, sell real estate, transfer land use rights, and sell or import the following goods at the tax rate of 1 1%:

1. Agricultural products such as grain, edible vegetable oil and edible salt;

2 residents tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas, coal products;

3 books, newspapers, magazines, audio-visual products and electronic publications;

4. Feeds, fertilizers, pesticides, agricultural machinery and plastic films;

5. Other goods specified by the State Council.

(3) Unless otherwise stipulated in Items 1, 2 and 5 of this article, the tax rate for taxpayers selling labor services and intangible assets is 6%.

(4) taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.

(five) domestic units and individuals cross-border sales of services and intangible assets within the scope of the State Council, the tax rate is zero.

The adjustment of tax rate is decided by the State Council.

skill

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

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