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Tax exemptions and tax deductions are complex processes to follow, even in the person’s origin country. As a foreigner, it gets more complicated as it is harder to follow laws abroad. Knowing your tax responsibilities and benefiting from tax advantages requires research and experience detailly.
Tax exemption is a situation where individuals or legal entities are free from specific taxes on their specific incomes or responsibilities. In most countries, there are tax exemption limits and these exemptions can be available for people who meet certain requirements.
These tax exemptions work in accordance with the financial periods. So, if a person wants to apply for tax exemption, they have to fill tax exemption form or apply electronically in the specific financial period to benefit.
Tax exemption and deduction are different things. Tax exemption means that a person or legal entity will not pay any taxes or reduced taxes for a specific income or wealth.
The tax deduction reduces the related spending made from the tax to be paid. As you made some related spending before, this spending will be reduced from the tax you are going to pay.
Basically, in the exemption, you don’t pay a specific tax. In the deduction, you get reduced tax to pay.
If you ask who qualifies for tax exemption, the answer widely depends. It mainly depends on your laws of the country of residence and origin.
You should consider both origin and residence country because there is a big topic called double taxation for foreigners. For example, if a person lives in another country and is tax responsible there also. He might pay tax in both his residence and the origin country if he does not conclude the required processes.
While this is general information, most countries have laws defining some people who qualify for tax exemption. Non-resident taxpayers, pensioners, and low-income people are generally exempt from paying some taxes. So, it is very important to research this on a situation basis.
The tax exemption process varies on the situation and country. You may not have to pay the said tax or pay and get it later as a return.
But generally, you will be applying for tax offices with a form. They will tell you the required documents. You may need a document from your origin country. This situation mostly happens in double taxation. You might also be required to translate that document into the language of the residence country.
In all conditions, especially if you are in a foreign country, you may need legal consultancy. Following the laws of tax exemption as per the new regime, requirements, and obligations need experience. You should be sure that you are getting legal consultancy from a reputable and experienced company.
You should get all tax exemptions you can get. As it is your right, you must benefit from all tax rights you can get. After learning how tax exemption works, you will be facing various exemptions in different fields.
In the beginning, you should take a look at these topics to get tax exemption;
• If there is an agreement between residence and origin countries,
• The minimum amount for wealth tax,
• The tax exemptions for dependents if you have one, Tax exemption to startups if you have one,
• Tax exemption for pensioners if you are a pensioner
• Tax exemption for non-residents if you are eligible
You should get legal consultancy to benefit from every tax exemption and deduction you can. They will provide you with the latest laws and regulations suitable for your situation. While choosing a legal consultant, you must carefully choose a professional, experienced, and reputable one.
Tekce Visa offers legal consultancy on tax law, including tax exemption and tax relief. The professional team of Tekce Visa consists of local and professional lawyers experienced in tax law. In addition, our lawyers speak in your language to give you better and faster service in our area of service.
With the modern services of Tekce Visa, you may get services of;
• Foreigner tax liabilities
• Tax exemption for expats
• Non-resident tax exemption
• Property tax exemption
• Tax deductions
• Tax returns Customized tax advice
Our lawyers will be informing you and concluding processes on your behalf. You will benefit from all the tax exemptions you can get. You may contact us anytime to get more details and exempt taxes as a foreigner with the best services.