According to Article 2 of the Notice on Tax Policies of Pension Service Institutions, donations made by enterprises, institutions, social organizations and individuals to welfare and nonprofit pension service institutions through non-profit social organizations and government departments are allowed to be fully deducted before paying corporate income tax and personal income tax.
The staff of the Local Taxation Bureau said that individuals can donate their income to social welfare undertakings such as education through social organizations and state organs, as well as areas and poverty-stricken areas that have suffered serious natural disasters in China. The part that does not exceed 30% of the taxable income declared by taxpayers can be deducted from their taxable income.
The Reply of State Taxation Administration of The People's Republic of China on the Application for Refund of Paid Individual Income Tax after Personal Donation (Guo [2004] No.865) further clarifies that donations to public welfare undertakings such as education that individuals are allowed to deduct before tax should belong to the taxable income in the current tax reporting period;
The donation balance that cannot be fully deducted in the current period shall not be transferred to other taxable income or deducted from the taxable income in the later tax declaration period, nor shall it be retroactively deducted from the taxable income in the previous tax declaration period.
Extended data:
The Municipal Local Taxation Bureau reminds taxpayers who are enthusiastic about public welfare undertakings. If there are donation expenses that meet the pre-tax deduction conditions of personal income tax, such as education and other public welfare undertakings, please remember to declare them in time and deduct them from the current income. This not only does a good thing, but also enjoys pre-tax deduction according to law.
The Ministry of Finance of People's Republic of China (PRC) and the State Taxation Administration of The People's Republic of China recently issued a notice confirming that the 20 1 1 annual charitable donations of the All-China Federation of Trade Unions and the Red Cross Society of China are eligible for pre-tax deduction. The confirmation of this qualification means that enterprises, institutions, social organizations and other organizations or individuals with income can make pre-tax deduction of public welfare donations through the All-China Federation of Trade Unions and the China Red Cross Society.
Fenghuang. com-Personal donation expenses must be deducted before tax in the current period | Taxpayer
Phoenix. Donations made through the Federation of Trade Unions last year can be deducted before tax.