Charitable trust has the lowest cost

Charitable trust originated in Britain and began to appear in the Middle Ages, and was used for charitable giving.

Zhang Gaorong, director of the research department of China Public Welfare Research Institute, said that trust is simply entrusted by people to manage property on their behalf.

charitable trust is a trust established for the purpose of public interests and benefiting the whole society or a significant part of the public.

On April 25th, 214, Ma Yun and Cai Chongxin, two founders of Alibaba, announced that they would set up a personal charitable trust fund.

The fund comes from the options they have in Alibaba Group, and its total size is 2% of the total share capital of Alibaba Group.

For the detailed information of the fund, the relevant staff of Alibaba said that this fund is Ma Yun's personal behavior, and all the information they know comes from Ma Yun's public information.

"Under the existing legal framework, it is much better for Ma Yun to set up a charitable trust and donate funds to a trust company than directly to the foundation." Shangguan Liqing, the founder of the charitable trust department of changan trust Company, said that if Ma Yun directly donates options or equity to the foundation, it will inevitably involve the asset evaluation. In this process, Ma Yun will have to pay income tax in one lump sum or gradually over five years for the value-added part of the stock.

according to the market valuation of Alibaba group after its listing in the United States, the fund size is between 2 billion and 4 billion dollars. even if it is paid only according to the 12% corporate income tax, Ma Yun will have to pay nearly 3 billion yuan in taxes and fees.

In addition, if Ma Yun sets up a non-public offering foundation with 2% options, according to the Regulations on Foundation Management, the non-public offering foundation will spend 8% of the fund balance every year. "Option donation has become a process, and in this process, he can't meet the provisions of the Regulations on Foundation Management," said Shangguan Liqing.