Public welfare donation is public welfare and relief donation (hereinafter referred to as public welfare donation), which refers to the donation provided by taxpayers to public welfare undertakings such as education and civil affairs and areas suffering from natural disasters and poverty-stricken areas through non-profit social organizations and state organs in China.
Public welfare social organizations refer to foundations, charitable organizations and other social organizations that meet the following conditions:
1, registered in accordance with the law, with legal personality;
2. For the purpose of developing public welfare undertakings, not for profit;
3. All assets and their added value are owned by legal persons;
4 income and operating balance are mainly used for enterprises that meet the purpose of legal person establishment;
5. The remaining property after termination does not belong to any individual or profit-making organization;
6. Do not engage in business unrelated to the purpose of its establishment;
7. Have a sound financial accounting system;
8. Donors do not participate in the property distribution of social groups in any form;
9. Other conditions stipulated by the competent departments of finance and taxation of the State Council in conjunction with the civil affairs department of the State Council and other registration management departments.
The pre-tax deduction qualification for public welfare donations is valid for three years nationwide.
Mass organizations shall meet the following conditions at the same time to obtain the pre-tax deduction qualification for public welfare donations:
1, which meets the conditions specified in Items 1 to 8 of Article 52 of the Regulations for the Implementation of the Enterprise Income Tax Law;
2, the organization department at or above the county level directly manages its organization;
3. Donation income and donation expenditure shall be accounted for separately, and the proportion of donation income used for charitable causes to the total donation income for three consecutive years before the declaration shall not be less than 70%.
Article 9 of the Enterprise Income Tax Law of People's Republic of China (PRC), if the public welfare donation expenditure incurred by an enterprise is within 12% of the total annual profit, it is allowed to be deducted when calculating the taxable income; The part exceeding the total annual profit 12% is allowed to be deducted when calculating the taxable income within three years after carry-over.
Article 10 When calculating taxable income, the following expenses shall not be deducted:
(1) Dividends, bonuses and other equity investment income paid to investors;
(2) enterprise income tax;
(3) tax late fees;
(four) fines, fines and confiscation of property losses;
(5) Donation expenditures other than those specified in Article 9 of this Law;
(6) sponsorship expenditure;
(7) Unapproved reserve expenditure;
(eight) other expenses unrelated to income.
People's Republic of China (PRC) Public Welfare Donation Law Article 3 The public welfare undertakings mentioned in this law refer to the following non-profit projects:
(a) activities of social groups and individuals in need of help, such as disaster relief, poverty alleviation and disability assistance;
(2) Education, science, culture, health and sports;
(3) Environmental protection and public facilities construction;
(4) Other public interests and welfare undertakings that promote social development and progress.