New Tax Incentives Announced for Charitable Donations in China
Monday, May 19th, 2008Income tax may be offset from personal and corporate donations
May 19 - As Dezan Shira & Associates advised last week, the Beijing tax bureau has issued today new guidelines for the treatment of tax on charitable donations.
Personal donations
For employees in China wishing to make personal donations, the donated amount will be exempt from individual income tax. A receipt from a China registered charity is required.
Tax deduction ratio
Pursuant to the current tax regulation, donations those made to earthquake disaster areas via non-profit making social and government organizations are tax deductible. The maximum deduction is 30 percent of the tax payer’s taxable income.
However, donations made to the following organizations are fully deductible (i.e. 100 percent):
Donations to the Red Cross Society of China (RCSC) or activities organized or recognized by the RCSC.
Donations to China Charity Federation, Beijing Charity Association, and other charities permitted by tax authority and finance ministry are fully tax deductible (more…)








Mar. 25 - Amidst the on-going rhetoric about China’s trade imbalances, a little understood, but significant revolution is underway – the massive emergence of China as the worlds largest commodities trading center.
Mar. 24 – Pictured at right is a tax paid form for individual income tax filings for 2007. These are sent to the place of work or residential address of expatriate individuals who have been working in China and who are subject to declaration of IIT on their salaries for 2007.


