Tax exemptions come in many forms, but one thing they all have in common is they either reduce

or entirely eliminate your obligation to pay tax. Definition: A tax allowance to certain organizations, persons, income, property or other items taxable under the system. USA: Personal exemptions If you are not claimed as a dependent on another taxpayer's return, then you can claim one personal tax exemption. This is a fixed amount that generally increases each year. The exemption reduces your taxable income just like a deduction does, but has fewer restrictions to claiming it. If you are married and file a joint tax return, both you and your spouse each get an exemption. Dependent exemptions The IRS allows you to take additional exemptions for each dependent you claim. Frequently, the source of these exemptions are the children who live with you for more than half the year, are under 19 years old (or under 24 if a full-time student) and who don't provide more than half of their own financial support during the tax year. Some of your relatives can also qualify to be your dependents if they live with you and even your parents who don't. Tax-exempt organizations For an organization to receive tax-exempt status, it must satisfy all IRS requirements. Generally, these are organizations that don't operate for profit and provide valuable services to the community such as a charity. If an organization receives tax-exempt status it's not required to pay federal income tax, but must maintain accurate records to keep its status. Donations you make to these organizations usually entitle you to claim a charitable contribution deduction if you itemize. State and local exemptions State, county and municipal governments also provide tax exemptions to businesses to stimulate the local economy. For example, a business may be exempt from paying local property taxes if it moves its operations to a particular geographic area. In Massachusetts, the state provides many telecommunication companies that provide cable television, Internet access and public broadcasts of radio and television an exemption from sales tax. Many cities and states also offer sales tax holidays where consumers can purchase goods without paying state or local sales taxes. UK: Income tax exemptions If you are under 65, then the allowance is at 5,035. If you are older, but less than 75, then the allowance rises up to a level of 7,280. If you are over 75, then you are allowed a tax free level that is slightly higher, at 7,420. If you are registered blind, then there is an extra 1,660 added onto the tax allowance. And if you are married and over 65, then there is a tax rebate. There are also a range of other deductions and rebates that abound, but these are the major ones. Exemptions on Investment National Savings and Investments

Certain investments via the state owned National Savings scheme are not subject to tax including Index linked Certificates (up to 15,000 per issue) and Premium Bonds, a scheme that issues monthly prizes in place of interest on individual holdings up to 30,000. Individual Savings Accounts Interest is paid tax-free, while dividends are paid along with a tax credit to the investor which can then be offset against dividend tax due. For a basic rate tax payer this means they have no tax to pay on a dividend. There is no overall limit on how much a person can have invested in ISA accounts, but additional investments are currently limited to 10,680 per person per year: a maximum of 5,340 in cash funds, with the balance being allocated either to mutual funds (Units Trusts and OEICs) or individual self-selected shares.[18] Pension funds These have the same tax treatment as ISAs in terms of growth. Full tax relief is also given at the individual's marginal rate on contributions or, in the case of an employer contributions, it is treated as an expense and is not taxed on the employee as a benefit in kind. Aside from a tax free lump sum of 25% of the fund, benefits taken from pension funds are taxable. Enterprise Investment Schemes A non taxable investment into smaller company shares over three years that qualifies for 20% tax relief. The facility also allows an indiviudal to defer capital gains liabilities (these gains can be stripped out in future years using the annual CGT allowance.) Insurance bonds These include offshore and onshore investment bonds issued by insurance companies. The main difference between the two is that corporation tax paid by the onshore bond means that gains in the onshore bond are treated as if basic rate tax has been paid (this cannot be reclaimed by zero or starting rate tax payers). With both versions up to 5% for each complete year of investment can be taken without an immediate tax liability (subject to a maximum total of 100% of the original investment). On this basis, investors can plan an income stream while deferring any chargeable withdrawals until they are on a lower rate of tax, are no longer a UK resident, or their death. Exceptions Many holdings and income from them are exempt for "historical reasons". These include Special, low tax arrangements for the monarchy, such as the arrangement used by the British Royal Family[19] to avoid inheritance taxation. Reduced income tax for special classes of person, such as non-doms, who claim to be resident in the UK but not "domiciled".[20] An Act of Parliament to protect the Earl of Abingdon and his heirs and assignees from paying income tax on the tolls on the Swinford Toll Bridge. [21] The income of charities is usually exempt from UK income tax. France: Allowance for over 65s and the disabled Individuals over the age of 65 or who are registered disabled and of modest means are entitled to a taxfree allowance of 2,311 (for 2010) where their total household income is up to 14,220 and 1,156 for income of between 14,220 and 22,930. The allowances double for a married or PACS couple where both fulfil the conditions. Tax credits Various tax credits are available. They are not deductible against the gross or net income, but deductible against the actual tax.

Certain of the tax credits are given on a cumulative basis, and the maximum credit that can be received from 2010 (that is, tax payable in 2011) is 20,000 plus eight percent of the global net taxable income of the household (before the scale rates are applied). These restricted tax credits include: The tax credit on dividends The tax credit for energy-saving work carried out on the main residence The tax credit for purchase of an environmentally friendly car The tax credit for the employment of home help The tax credit for child minding expenses The tax credit for filing tax returns electronically and paying tax by direct debit or electronically The tax credit for mortgage interest NGOs: The NGO does not compete with the commercial sector; or, if it does, an inquiry concludes that the NGO does not conduct its activities in the same manner as those in the commercial sector (Tax Instruction of 2006). The not-for-profit nature of the activity will depend on its compliance with the four P rule defined in the 1998 Tax Instruction: i. the [P]roduct offered satisfies a need not met by the private sector; ii. the [P]ublic is unable to afford the product offered by the private sector; iii. the [P]ricing is lower than in the private sector; and iv. the [P]romotion of a public interest mission may not use advertising or marketing tools in the same manner as corporations. China: In theory, foreign-invested companies in China are subject to 30% corporation tax plus an additional 3% local corporation tax. In practice, however, foreign-invested companies rarely have to pay the full corporate tax rate. Tax exemption and 50% tax reduction. Manufacturing companies operating in China for at least ten years are granted a tax exemption period from the date of entering the profit zone. In the first two years they are fully exempt from corporation tax, and in the following three years they are granted a 50% reduction in the tax burden. The five year period begins in the year in which an accumulated profit, after taking into account loss carry forwards, is recorded for the first time. Moldova: Personal allowance (1) Each taxpayer (resident individual) is entitled to a personal exemption amounting to 8100 lei per year. (2) The amount of personal exemption, provided for by para. (1), shall be 12000 lei per year for every individual who: a) suffered from radiation sickness caused by the Chernobyl nuclear station accident; b) is handicapped and it has been established that the handicap is the result of the Chernobyl nuclear station accident; c) is a parent or spouse of a soldier who died or is missing following the defense of the territorial integrity and independence of the Republic of Moldova, as well as in the Afghanistan war; d) is handicapped following the defense of the territorial integrity and independence of the Republic of Moldova, as well as in the Afghanistan war; e) is handicapped as a result of war, invalid from childhood, invalid of I and II grades; f) is a pensioner-victim of political repressions and subsequently rehabilitated.

n conformitate cu legislaia Republicii Moldova, ntreprinderile nregistrate n Moldova beneficiaz de faciliti fiscale pentru investiii: 1. ntreprinderile, al cror capital social depete 250000 dolari SUA, sunt scutite de impozitul pe venit n mrime de 50% pe o perioad de 5 ani consecutivi. 2. ntreprinderile, al cror capital social depete 2000000 dolari SUA, sunt scutite de impozitul pe venit n mrime de 100% pe o perioad de 3 ani consecutivi. Portul Giurgiuleti ntreprinderile rezidente n portul internaional Giurgiuleti care efectueaz investiii capitale n mrime ce depete o sum echivalent cu 5000000 dolari SUA sunt scutite de impozitul pe venit pentru 5 ani consecutivi. ntreprinderile care efectueaz investiii capitale suplimentare n mrime ce depete o sum echivalent cu 5000000 dolari SUA sunt scutite de impozitul pe venit pentru nc 2 ani consecutivi. Companiile IT ntreprinderile a cror venit provine n mrime de peste 50% din vnzrile programelor de calculator elaborate personal sunt scutite de impozitul pe venit pe o perioad de 5 ani.