Donation loss expenditure also includes taxpayers' donations for public welfare and relief, and the part within 3% of annual taxable income is allowed to be deducted before tax.
Public welfare disaster relief donations refer to donations made by taxpayers to public welfare undertakings such as education and civil affairs, and to areas suffering from natural disasters and poverty-stricken areas through non-profit social organizations and state organs in China.
The social organizations mentioned include China Youth Development Foundation, Hope Project Foundation, Soong Ching Ling Foundation, Disaster Reduction Committee, China Red Cross Society, China Disabled Persons' Federation, National Foundation for Ageing, Old District Promotion Association and other non-profit public welfare organizations approved by civil affairs departments.