non-profit organization (hereinafter referred to as NGO) is a product of
society revolution and social democratic management. However, being no clear
division of “for-profit organization” and “non-profit organization” in laws, NGOs
have a variety of names in practice. In reality, non-profit organization
engages in profit-making activities in order to maintain its operation.
However, there are no legal provisions for that. Therefore, the opinion that NGOs
should be given preferential tax regardless of its engaging in for-profit or
non-profit activities may violate the intention of preferential tax policy intention.
This paper believes that the preferential tax policy for NGOs should be turned
from static qualification concessions to dynamic behavior of preferential, and
as far as profit-making activities of NGOs are concerned, the application of
preferential tax policy should depend on whether their profit-making activities
reflect the aim of non-profit organizations.