ABSTRACT

Tax exemption refers to immunity from the requirement of paying taxes. Depending on the tax system in place, tax exemption may refer to national or local taxes. The taxes may include excise, income, sales, use, personal property and real property taxes. Tax laws provide exemption from taxation for a wide variety of organizations-again depending on the jurisdiction-usually non-profit, such as churches, colleges, universities, healthcare providers, various charities, civic leagues, labour unions, trade associations, social clubs and political organizations. In the USA, tax-exempt status under federal law can mean comparable status under state and local law. In the UK, such policies date back to 1894, and for most common law jurisdictions, the 1601 Poor Law and subsequent legislation provide the foundation for tax exemption based on the notion of charity (see also Charity law). In civil-law countries, the concept of public benefit serves a similar purpose, and was introduced in the wake of civil law reforms in the late 19th-early 20th century.