Donation is the transfer of ownership or nominal ownership of your assets for free, which can reduce the corporate income tax rate or personal income tax rate. However, donations are not unlimited. Some donations can be deducted, and there is no limit on the amount, which saves comprehensive income tax.
According to the provisions of the tax law, donations related to national defense, condolences to PLA officers and soldiers and donations to the government are not limited by the amount and are deducted from comprehensive income. Donations related to Project Hope and the Fund for the Disabled can be deducted from the comprehensive income. For losses caused by natural disasters, donations to people in disaster areas can be deducted from comprehensive income. Some donations can only be deducted from their comprehensive income, and the deduction ratio is generally set according to the total income.
When the donation amount is large, you can also set up your own charity consortium. On the one hand, it can let outsiders know about donors, on the other hand, it can effectively control funds, so that donations can be really used in their own charitable acts, which can achieve the purpose of saving taxes and becoming famous.
If you own your own company, you can also turn your personal donation into a company donation. As long as the amount can be deducted from the current net profit, the enterprise income tax and its dividend distribution can be omitted. The comprehensive income tax or capital gains tax payable by shareholders is more favorable than individual donation.
Individual charitable donations can be deducted from taxable income by no more than 30%. Public welfare donations to education, poverty alleviation and poverty alleviation through public welfare organizations, people's governments at or above the county level and their departments can be deducted from taxable income in accordance with the relevant provisions of the individual income tax law, and can be deducted by 100%.
Whether it is an individual or a company, as long as it meets the conditions, charitable donations can indeed offset and save taxes. Encouraging enterprises and individuals to participate in charitable donations through tax policy is one of the means for the state to promote a harmonious society.
legal ground
"Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China" Article 19 The term "individuals donate their income to charities such as education, poverty alleviation and poverty alleviation" as mentioned in Article 6, paragraph 3 of the Individual Income Tax Law means that individuals donate their income to charities such as education, poverty alleviation and poverty alleviation through public welfare social organizations and state organs in China; Taxable income refers to the taxable income before deducting donations.
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.