close
Share with your friends

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.

1000

Related content

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 | davidxling@kpmg.com

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal