Tax exemption technology has the following characteristics: Tax exemption technology uses the principle of absolute tax saving, directly exempts taxpayers from the absolute amount of tax, and belongs to the absolute tax saving type customs planning technology. Tax exemption technology is simple and easy to implement. Generally, it does not require the use of professional knowledge such as mathematics, statistics, and financial management for planning, nor does it require complex calculations. Even without calculations or comparisons, you can know whether taxes can be reduced. The technology is very simple and intuitive. Tax exemption is a reduction or exemption for specific taxpayers, taxable objects, and situations. For example, you must engage in a specific industry, operate in a specific area, and meet specific conditions, etc., but not every taxpayer can or is willing to do this. Therefore, tax exemption technology is often not widely used and has a narrow scope of application. Tax exemption technology has certain risks. In the investment and business activities of enterprises that can use tax exemption technology, there are often some areas, industries, and projects that are considered to have low investment returns or high risks. For example, investing in high-tech enterprises can get tax exemption treatment and may also get an investment return rate that exceeds the social average, but the risk is extremely high. It is very likely that the investment will fail due to various reasons, making the tax exemption benefits meaningless.
Key points of tax-free technology
In the process of using tax-free technology, try to obtain tax-free treatment as much as possible under legal and reasonable conditions, and strive to obtain tax-free treatment for as many projects as possible. Compared with paying taxes, taxes exempted are taxes saved. The more taxes exempted, the more taxes saved.