I. Standards

1. Pre-tax deduction of public welfare donations refers to the public welfare donation expenses incurred by enterprises, and the portion that does not exceed 12% of the total annual profit is allowed to be deducted.

2. The total annual profit refers to the annual accounting profit calculated by the enterprise according to the unified accounting system of the state.

3. Donation expenses for charitable activities and public welfare undertakings by enterprises through public welfare social organizations or people's governments at or above the county level (including county level) and their constituent departments and directly affiliated institutions are allowed to be deducted when calculating taxable income; The portion exceeding 12% of the total annual profit shall be deducted from the taxable income within three years after the carry-over.

II. Special circumstances —— 1%

1. Donating articles directly to hospitals undertaking epidemic prevention and control tasks to deal with pneumonia epidemic in novel coronavirus is allowed to be deducted in full when calculating taxable income.

2. Donations to welfare and non-profit elderly service institutions are allowed to be fully deducted before paying corporate income tax and personal income tax.

3. Donations used for public welfare relief through China Foundation for the Development of Ageing and other 8 units are allowed to be fully deducted before paying enterprise income tax and personal income tax.

4. Donations used for public welfare relief through Soong Ching Ling Foundation and other six units are allowed to be fully deducted before paying corporate income tax and personal income tax.

5. Donations to China Health Express Foundation and other five units are allowed to be fully deducted before paying corporate income tax and personal income tax.

6. Donations used for public welfare relief through China Medical and Health Development Foundation are allowed to be fully deducted before paying enterprise income tax and personal income tax.

7. Donations used for public welfare relief through China Education Development Foundation are allowed to be fully deducted before paying corporate income tax and personal income tax.

8. Donations to education through non-profit social organizations and state organs in China are allowed to be fully deducted before corporate income tax and personal income tax.

9. Donations to rural compulsory education are allowed to be fully deducted from the income before paying enterprise income tax and personal income tax.

1. Donations to public welfare youth activity places are allowed to be fully deducted before paying corporate income tax and personal income tax.

Legal basis

Article 3 of the Donation Law of the People's Republic of China on Public Welfare

The public welfare undertakings mentioned in this Law refer to the following non-profit items:

(1) activities of social groups and individuals in need such as disaster relief, poverty relief and assistance to the disabled;

(2) education, science, culture, health and sports;

(3) environmental protection and social public facilities construction;

(4) Other social undertakings and welfare undertakings that promote social development and progress.

article 9 of the enterprise income tax law of the people's Republic of China

the portion of the public welfare donation expenses incurred by an enterprise that is less than 12% of the total annual profit is allowed to be deducted when calculating the taxable income; The portion exceeding 12% of the total annual profit shall be deducted from the taxable income within three years after the carry-over.