Tax-free treatment means that the seller confirms the income from the sale of assets in a general way, and then offsets it through tax-free income or pre-tax deduction.
Non-tax treatment refers to the tax treatment, such as government subsidies, that enterprises receive capital invested by non-shareholders. Non-taxable income in China's enterprise income tax law corresponds to non-taxable treatment. Grasping the key point of this treatment, the tax basis of the money obtained by the enterprise is zero. If the money obtained is property, the tax basis of the property is zero. If the money obtained is cash, the tax basis of the property purchased with the cash is confirmed as zero, and the expenses are paid with the cash, and the deduction of the expenses is zero.
Deferred treatment means that the tax law stipulates that taxpayers realize income in transactions, but according to the deferred tax rules in the tax law, taxpayers are allowed not to confirm the gains or losses of asset sales. For example, business combination, the tax law thinks that business combination is a kind of property exchange, but for business combination that meets the prescribed conditions, the tax law allows the parties to defer tax payment.
Tax treatment refers to the tax treatment method of confirming the income from asset sale according to the difference between the income from asset sale and tax basis when taxpayers sell assets. Tax treatment can be subdivided into two specific types: one-time recognition income and installment recognition income.
Deferred tax treatment refers to the tax treatment practice that taxpayers cannot pay due taxes due to difficulties and other factors according to the provisions of the Tax Administration Law and are approved by the competent authorities to postpone payment. China's tax administration law stipulates that the time limit for deferred payment is three months.
Taxing by installments refers to the tax treatment method of paying taxes by installments with the approval of the tax authorities. This practice has only recently appeared, such as tax treatment of non-monetary assets investment, tax treatment of debt restructuring that meets certain conditions, tax treatment of overseas investment with assets or equity that meet certain conditions, and so on.