China Clarifies Tax Deduction for Charitable Donations

September 16, 2009 Posted by China Briefing Reading Time: < 1 minute

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.