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China: Individual income tax policy, charitable donations

China: Individual income tax policy

The Ministry of Finance and the State Taxation Administration in late December 2019 jointly issued guidance that generally confirmed the policy under the individual income tax rules for charitable donations.


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The guidance is Announcement 99 of 2019, and is known in English as the “Ministry of Finance and the State Taxation Administration announcement on individual income tax policy in relation to charitable donations.” The rules provided in Announcement 99 are effective retroactively from 1 January 2019.

Under the individual income tax measures in China, amounts of charitable donations made in support of education, poverty alleviation, and relief provided via social welfare charitable organisations and public authorities in China may be deducted from pre-tax income, subject to a cap of 30% of the taxpayer’s taxable income. Certain donations to entities regulated by the State Council are fully tax deductible.

Under the income categorisation framework of the new individual income tax system, Announcement 99 further clarifies the income tax treatment of charitable donations made by individual taxpayers and also standardises the tax deduction claims process and the corresponding time schedule—these provisions are seen as encouraging taxpayers to make charitable donations.


For more information, contact a KPMG tax professional:

David Ling | +1 609 874 4381 |

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