How To Apply for Tax Exempt Status
In almost all countries around the world, a substantial amount of taxes are applied on all incomes, be it an individual or an organisation. In some countries, the rate of taxation is as high as a third of the total income. In return of paying these taxes, the government provides the people with the basic necessities of life and infrastructure in the country.
Some individuals or organisations are, however, exempt from paying taxes based on their circumstances or field of work. If an individual or an organisation qualifies for tax exemption due to their circumstances or on the basis of the nature of their work, they can get a tax exempt status and will not be required to pay taxes.
Get a tax exempt status like all other matters is done through a process. By following the procedures, a tax exempt status can be acquired.
Instructions
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Eligibility
The first and foremost matter to look into is whether you as an individual or an organisation fit into the frame of a tax exempt person or entity. It will either be based on your bad financial health or if your organisation is say a non-profit one. You can engage a lawyer or check with your local authorities whether or not you qualify for the status of a tax exempt person or organisation.
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Fill in the Forms
Once you are aware that you can file for a tax exempt status, the next thing to do is to fill in the forms. These forms will be available at the office of your local tax authority or in most cases you can download them from the website of the related department. Make sure that you fill them in thoroughly and do not miss any of the information that is required. Some basic documents may also be needed to submit along with the forms and make sure that you provide these when filing.
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Additional Information
There is a possibility that the local authority or one at the national level, which ever grants the tax exempt status may require further documentation. This could be in form of pay stubs or bank information in case of an individual or an organisation, they may require certain incorporation documents to further asses if you are eligible for the tax exempt status. Make sure that you fill in all the documents on time to make ensure that your case is processed without any delays. They may also physically inspect to make sure that they are providing the status to the right person or entity.
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