Tax exemption
A tax exemption takes place in such a way that certain parts of income, sales or circumstances are expressly excluded from the respective tax.
Personal or factual exemption
A distinction is made between a personal and a factual tax exemption. A personal tax exemption applies to the taxable person, i.e. the taxpayer, and an objective tax exemption to the taxable object, i.e. the object of taxation. An example of a personal tax exemption is the tax exemption for relatives in direct line with the real estate transfer tax in Germany. A factual tax exemption exists, for example, in the exemption of sales from rental and the leasing of land from sales tax .
Examples
- Example income tax
- According to Section 3 No. 26 of the Income Tax Act, the so-called flat rate for trainers for part-time activities up to a maximum of EUR 2,400 are tax-free .
- Example sales tax
- According to § 4 No. 12 UStG the renting and leasing of real estate are tax-free .
- Example trade tax
- According to § 3 No. 1 GewStG u. a. the state lottery companies, the licensed public casinos with their activities that are subject to the casino tax.
- Example corporation tax
- According to § 5 No. 7 KStG, political parties ... and their regional associations as well as municipal electoral associations and their umbrella organizations are tax-free .
See also
swell
- Georg Jochum: The tax relief , 2006, ISBN 3825877388 , page 148 ff. Online
Web links
Wiktionary: Tax exemption - explanations of meanings, word origins, synonyms, translations
