Provisions on public welfare and disaster relief donations

(1). Donations made by taxpayers for public welfare and relief are allowed to be deducted within 3% of the annual taxable income.

The so-called public welfare disaster relief donation refers to the taxpayer's donation to education, civil affairs and other public welfare undertakings and areas suffering from natural disasters and poverty-stricken areas through China's non-profit social organizations (including China Youth Development Foundation, Hope Project Foundation, Soong Ching Ling Foundation, Disaster Reduction Committee, China Red Cross Society, China Disabled Persons' Federation, National Foundation for Aging, and Old District Promotion Association) and state organs. The taxpayer's direct donation to the recipient is not allowed to be deducted. (Excerpted from the Entry Rules of the Income Tax Ordinance)

Donations made by enterprises to children in poverty-stricken areas through UNICEF are regarded as public welfare donations, and can be deducted according to the proportion stipulated by the state when calculating and paying enterprise income tax. (Guo Shui Fa [1999] No.77)

(two) all kinds of donations of enterprises are included in the non-operating expenses of enterprises, and the part of donations for public welfare relief that does not exceed 3% of the taxable income of the current year is deducted when paying income tax; More than 3% donations and non-public welfare disaster relief donations are adjusted when paying taxes.

(Excerpted from [94] Cai Gong Zi No.2)

(3) The calculation procedures of public welfare and relief donations are as follows:

① Adjust the income, that is, exclude the donation amount that the enterprise has included in the non-operating expenses and include it in the income.

(2) Multiply the adjusted income by 3% to calculate the legal deduction of public welfare and disaster relief donations.

(3) The adjusted income is used for public welfare and relief donations after deducting the legal deduction items, and the difference is taxable income.

If the current donation is less than 3% of the income, it will be deducted according to the facts. (Guo Shui Fa [1994] No.229)

(four) the income increased by the tax authorities shall not be used as the base for calculating public welfare and relief donations. (Guo Shui Fa [1997] 19 1)

(5) 1 997 65438+1October1By the end of 2000, taxpayers had donated to national art performance groups such as national key symphony orchestra, ballet, opera troupe and Beijing Opera Troupe, as well as to public libraries, museums, science and technology museums, art galleries and revolutionary history through cultural administrative departments or approved non-profit organizations.

Donations to cultural centers or mass art museums that meet the requirements after examination by the competent tax authorities may be approved one by one according to the above provisions.

(Excerpted from Caishuizi [1997] No.7)

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