In the total amount of taxable objects, the tax-free part is called tax exemption. Exempted amount refers to the amount exempted from taxation in the total amount of taxable objects. It is the amount deducted in advance from the total amount of taxable objects according to certain standards, and the exempted amount is not taxed, only the part that exceeds the exempted amount is taxed.
Second, analyze the details
The exemption amount is also called tax-free point. The tax law stipulates the amount of tax-exempt objects. Regardless of the amount of the object to be taxed, the exempted amount is not taxed, and only the rest is taxed. According to the provisions of individual income tax, if the income from investment, translation, transfer of patent right, patent license, provision and transfer of non-patented technology is less than 4,000 yuan each time, 800 yuan will be deducted. If it exceeds 4000 yuan, the expenses will be reduced by 20%, and then the balance will be taxed at a rate of 20%. The amount of expenses deducted here is the exemption amount.
3. What is the difference between the threshold and the exemption amount?
1. When the amount of taxable object is greater than the threshold and exemption amount, if the threshold system is adopted, the full amount of taxable object shall be taxed; If the exemption system is adopted, only the part of taxable objects that exceeds the exemption amount will be taxed;
2. The emphasis of the two is different. The former takes care of low-income people, while the latter takes care of all taxpayers.