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China Briefing is a monthly magazine and daily news service about doing business in China. We cover topics relating to the Chinese economy, the market in China, foreign direct investment and Chinese law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates

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China Clarifies Tax Deduction for Charitable Donations

Posted on September 16, 2009 by China Briefing

Sept. 16 – The Chinese Ministry of Finance, State Administration of Tax and the Ministry of Civil Affairs have jointly issued Caishui (2009) No 85; which deals with the first batch of Charitable Social Organizations (CSO) eligible for the deduction of charitable donations for income tax purposes.

According to China’s corporate income tax law, a company’s charitable donations to eligible CSOs are deductible up to 12 percent of the company’s total annual profit. For individuals, the amount under individual income tax law is fully deductible.

Sixty-nine organizations have been listed in total. To view full details (in Chinese) of the circular and the applicable organizations please click here.