Research On The Recognition Of Tax-Free Income Of Non-Profit Organizations

In the context of comprehensively deepening reform in China,non-profit organizations play an important role in education,science and technology,culture,and other aspects.China promotes the development of non-profit organizations by providing reasonable tax incentives.As a non-profit organization,non-profit private schools have special tax treatment.Article 47 of the "Private Education Promotion Law" seems to have clear provisions on the tax treatment of non-profit private schools,but there are disputes in practice.Therefore,this article conducts research on the identification of tax-free income of non-profit organizations in China,especially from the perspective of non-profit private schools,which can effectively solve the dilemma arising from Article 47 of the "Private Education Promotion Law" in practice,and is conducive to the reasonable enjoyment of tax preferential policies by non-profit private schools,while ensuring the sustainable and healthy development of non-profit organizations.Based on this,this article is divided into four parts.The first part is the theoretical basis and legislative status quo,clarifying the particularity of non-profit private schools,to illustrate the reason for this article to take non-profit private schools as a perspective.The second part takes the case of Changsha Medical College’s tax supplement as a typical case,emphasizing the controversy that exists in the practice of determining the tax-free income of non-profit private schools.This leads to three issues.One is whether the failure to qualify for tax exemption in the process affects the physical recognition of tax exempt income by non profit private schools;Whether the tuition and accommodation fees of non-profit private schools enjoy the same tax treatment as those of public schools;The third is whether the tuition and accommodation fees of non-profit private schools are tax-free income.The following analysis is drawn from opposing perspectives.The third part is a jurisprudential analysis,which clarifies that failure to qualify for tax exemption does not affect the determination of tax exempt income through substantive tax principles and legal rank analysis based on question 1;Compare the income of public schools and non profit private schools according to question 2,and clarify that the tuition and accommodation fees of public schools are non taxable income,while the tuition and accommodation fees of non profit private schools themselves constitute taxable income.If they meet the tax exemption conditions,they are recognized as tax exempt income;According to the qualitative analysis of the income of non-profit private schools in question 3,it is clear that the tuition and accommodation fees of non-profit private schools belong to taxable income.The fourth part is the suggestions for improving the recognition of non-profit organizations’ tax exempt income.By improving the recognition rules of non-profit organizations’ tax exempt qualifications,strengthening the tax compliance of non-profit organizations,and improving the legal level of the recognition rules of non-profit organizations’ tax exempt income,we can solve the problems existing in the practice of recognizing non-profit organizations’ tax exempt income.