Expenditure on charitable donations, which is lower than 12% of this year's profit, is allowed to be deducted when calculating taxable income. In other words, within this proportion, it can be deducted as an expense.
Tax reduction of public welfare donation expenditure
Public welfare donation expenditure can only deduct the taxable income of enterprise income tax, not personal income tax.
According to Article 9 of the Enterprise Income Tax Law:
Expenditure on charitable donations, which is lower than 12% of this year's profit, is allowed to be deducted when calculating taxable income. In other words, within this proportion, it can be deducted as an expense.
Donations to the following social groups can enjoy full pre-tax deduction:
1, China Red Cross Society
2. China Health Express Foundation
3. Sun Economic Science Foundation
4. china charity federation
5. China Legal Aid Foundation
6. China Courageous Foundation
7. Soong Ching Ling Foundation
8. china welfare institute
9. China Welfare Foundation for the Disabled
10, China Foundation for Poverty Alleviation
1 1, China Coal Mine Workers' Pneumoconiosis Treatment Foundation
12, China Environmental Protection Foundation
13, China Medical and Health Development Foundation
14, China Education Development Foundation
15, China Foundation for the Development of Ageing.
16, China Chinese Education Foundation
17, china green foundation
18, China Women's Development Foundation
Precautions for pre-tax deduction of charitable donations:
1, receiving company
Article 51 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates the conditions for public welfare donations: The public welfare donations mentioned in Article 9 of the Enterprise Income Tax Law refer to the donations provided by enterprises to public welfare undertakings stipulated in the People's Republic of China (PRC) Public Welfare Donation Law through public welfare social organizations or people's governments at or above the county level and their departments. According to the provisions of this article, public welfare donations must meet the following two conditions:
(1) The recipient must be the people's government at or above the county level and its departments and directly affiliated institutions. If the payee is a township people's government or a street office, it cannot be deducted before tax.
(2) The expenditure on public welfare donations to public welfare social organizations must be the year of final settlement of enterprise income tax, and the recipient is on the list jointly issued by the departments of finance, taxation and civil affairs. On the contrary, it cannot be deducted before tax.
2. Legitimacy of bills
You can't use the pre-tax deduction of bills of administrative institutions, but you should provide the public welfare donation bills printed by the financial department at or above the provincial level (including the provincial level) and stamped with the seal of the donation unit, or the receipt of the non-tax income general payment book stamped with the seal of the donation unit as a legal deduction certificate.
3. Is it a direct donation?
Direct donation expenses incurred by enterprises should be taxed and increased. For example, based on the guidance of government assistance, enterprises directly donate to poor villages, farmers, urban residents with difficulties, rural primary schools and poor students according to the poverty alleviation plan of the government and relevant departments. Although this kind of behavior is public welfare, it does not meet the conditions of public welfare donation stipulated in the tax law.