International Tax Corner

Glossary

 

 

Australia

  • Key Dates for 2021 Australian Tax Year [read]

​Exemption

Fiscal year

 

Hong Kong SAR

  • Reporting by Trust Companies and Trusts under Hong Kong's CRS rules [read]
  • Recent Developments in Hong Kong's Exchange of Information Rules [read]

 

United Kingdom

  • Domiciled vs non-domiciled resident [read]
  • Statutory residence test (SRT) [read]

United States 

  • A guide to US income tax treaties [read]
  • I Got 99 Problems and They’ re All FATCA [read]

Taxable periods  

  • A jurisdiction may adopt the term "taxable period" if its fiscal year or tax year does not coincide with the calendar year. Find them for the following jurisdictions: Hong Kong, Japan, Singapore, and the United Kingdom; [read]
  • See also Fiscal year.

Tax-exempt goods

  • An item or activity that should have been taxable but for the specific provision that provides that it is not taxable. "Exempted from tax" has the same end result as "not liable to tax" in that the taxpayer is not required to pay the tax, but they differ.
  • "Not liable to tax" is opposite to "liable to tax", and vice versa.  "Tax-exempt" falls under the sphere of "liable to tax" if it had not been for the specific provision to the contrary. 

 

Zero-rated goods

  • Value Added Tax (VAT) ... For a “zero-rated good,” the government doesn't tax its sale but allows credits for the value-added tax paid on inputs (input credit). If a good or business is “exempt,” the government doesn't tax the sale of the good, but producers cannot claim a credit for the VAT they pay on inputs to produce it.
  • For zero-rated exports, the input VAT is refundable. For example, VAT is a tax levied on goods and services consumed in the UK. When goods are exported they are 'consumed' outside the UK and to impose VAT on such goods would be contrary to the purpose of the tax. Therefore, the supply of exported goods is zero-rated provided the following conditions are met: i) evidence (either official or commercial) you must hold to prove entitlement to zero-rating; ii) time limits in which the goods must be physically exported from the UK; and iii) time limits in which you must obtain evidence of export to support zero-rating.
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