I. Provisions on deduction of donation limit (deduction ratio is 3%)

The deduction of individual charitable donation limit refers to the taxpayer's charitable donation, and the part of the donation amount that does not exceed 3% of the taxpayer's declared taxable income can be deducted from his taxable income.

including the following specific situations:

(1) individual donated housing as public rental housing

Article 5, paragraph 2, of the Announcement of the Ministry of Finance and the State Administration of Taxation on Tax Preferential Policies for Public Rental Housing (Announcement No.61 of the Ministry of Finance and the State Administration of Taxation in 219) stipulates that if individual donated housing is a public rental housing, if it complies with the provisions of tax laws and regulations, the expenditure on its public welfare donation should not exceed its declaration.

(II) Donations to Publicity and Cultural Undertakings

Article 7 of the Notice of the State Council on Several Economic Policies to Support the Development of Cultural Undertakings (Guo Fa [2] No.41) stipulates that donations to Publicity and Cultural Undertakings shall continue to be encouraged. Donations made by social forces to the following publicity and cultural undertakings through non-profit public welfare organizations or state organs approved by the state are included in the scope of public welfare donations. After examination and approval by the tax authorities, when taxpayers pay enterprise income tax, the portion within 1% of the annual taxable income can be deducted when calculating the taxable income; When a taxpayer pays personal income tax, the part of the donation that does not exceed 3% of the taxable income declared by the taxpayer can be deducted from its taxable income.

1. Donations to national key symphony orchestras, ballet companies, opera companies, Beijing Opera companies and other national art performance groups.

2. Donations to public libraries, museums, science and technology museums, art galleries and revolutionary history memorial halls.

3. Donations to key cultural relics protection units.

4. donations for social welfare activities, projects and cultural facilities accepted by non-production and operation cultural centers or mass art museums affiliated to the cultural administration department.

(III) Donations to public welfare charities such as education, poverty alleviation and poverty alleviation through public welfare social organizations and state organs in China

Article 6 of the Individual Income Tax Law stipulates that individuals who donate their income to public welfare charities such as education, poverty alleviation and poverty alleviation can be deducted from their taxable income.

Article 19 of the Regulations for the Implementation of the Individual Income Tax Law specifically explains that individuals donate their income to charitable causes such as education, poverty alleviation and poverty alleviation, which means that individuals donate their income to charitable causes such as education, poverty alleviation and poverty alleviation through public welfare social organizations and state organs in China.

The specific policy of deducting 3% from the donation limit for charitable causes such as education, poverty alleviation and poverty relief has the following documents:

1. Taxpayers donate their taxable income to education, civil affairs departments, natural disaster-stricken areas and poverty-stricken areas through Guanghua Science and Technology Foundation, and the part of individuals whose taxable income is less than 3% is allowed to be deducted before personal income tax. (Guo shui Han [21] No.164)

2. Taxpayers' public welfare and relief donations to China Population Welfare Foundation are allowed to be deducted before personal income tax for the part within 3% of the taxable income declared by individuals. (Guo shui fa [21] No.214)

3. According to the relevant provisions of the Individual Income Tax Law of the People's Republic of China, the portion of the taxpayer's public welfare relief donation through the China Women's Development Foundation that is less than 3% of the taxable income is allowed to be deducted before tax. (Guo shui Han [22] No.973)

4. The portion of taxpayers' taxable income that is less than 3% is allowed to be deducted before paying personal income tax. (Guo shui Han [23] No.78)

5. According to the provisions of the Individual Income Tax Law of the People's Republic of China, taxpayers' donations to the China Legal Aid Foundation and used for legal aid can be deducted before income tax according to the proportion stipulated by tax laws and regulations. (Guo shui Han [23] No.722)

6. The taxpayer's donation to China Environmental Protection Foundation can be included in the scope of public welfare relief donation, and the part of the personal income tax taxpayer's donation that does not exceed 3% of the taxable income can be deducted before tax. (Guo shui Han [23] No.762)

7. The portion donated by taxpayers through the chinese primary health care Foundation that does not exceed 3% of the taxable income is allowed to be deducted before personal income tax. (Guo shui Han [23] No.763)

8. Taxpayers make public welfare relief donations through the Yan Baohang Education Foundation, and the portion within 3% of the taxable income declared by individuals is allowed to be deducted before individual income tax. (Guo shui Han [24] No.341)

9. According to the relevant provisions of the Individual Income Tax Law of the People's Republic of China and its implementing regulations, pre-tax deduction is allowed for taxpayers' donations to China Senior Prosecutor Education Foundation, and the amount of donations is less than 3% of the declared taxable income of individual income tax. (Guo shui Han [25] No.952)

1. According to the relevant provisions of the Individual Income Tax Law of the People's Republic of China and its implementing regulations, pre-tax deduction is allowed for taxpayers' donations to the Emergency Rescue Promotion Center of the Ministry of Civil Affairs, and the amount of donations is less than 3% of the declared taxable income of individual income tax. (Guo shui Han [25] No.953)

11. For individuals, through China Financial Education Development Foundation, China Association for the Promotion of International NGO Cooperation, china association of social workers Orphan and Disabled Children Relief Fund Management Committee, China Development Research Foundation, Tan Kah Kee Science Award Foundation, China Friendship and Peaceful Development Foundation, Chinese Literature Foundation, China Agricultural Science and Education Foundation, China Children's Culture and Art Foundation and China Public Security Foundation. (Cai Shui [26] No.73)

12. For the public welfare relief donations that individuals use for AIDS prevention and treatment through non-profit social organizations and state organs, the portion of the taxable income of individuals who declare personal income tax is allowed to be deducted before tax. (Cai Shui [26] No.84)

13. According to the Individual Income Tax Law of the People's Republic of China and its implementing regulations, the public welfare and relief donations made by taxpayers through Xiangjiang Social Assistance Foundation, which do not exceed 3% of the declared taxable income of individual income tax, are allowed to be deducted before individual income tax. (Guo shui Han [26] No.324)

14. According to the Individual Income Tax Law of the People's Republic of China and its implementing regulations, the public welfare and relief donations made by taxpayers through the China Economic Reform Research Foundation are allowed to be deducted according to the facts before the individual income tax. (Guo shui Han [26] No.326)

15. According to the relevant provisions of the Individual Income Tax Law of the People's Republic of China, the public welfare and relief donations made by taxpayers through the China Foundation for International Studies and Academic Exchange are allowed to be deducted according to the facts before the individual income tax. (Guo shui Han [26] No.447)

18. The portion of taxpayers' charitable and relief donations through china narcotics control foundation that does not exceed 3% of the declared taxable income of individual income tax is allowed to be deducted before paying individual income tax. (Guo shui Han [26] No.1253)

16. For donations made by individuals for public welfare relief through China Overseas Chinese Economic and Cultural Foundation, China Minority Culture and Art Foundation, China Cultural Relics Protection Foundation and peking university education foundation, pre-tax deduction is allowed when individuals declare taxable income less than 3%. (Caishui [26] No.164)

17. Donations made by individuals to the Technological Innovation Fund Management Center of the Ministry of Science and Technology for technological innovation funds of small and medium-sized enterprises through public welfare social organizations and state organs are allowed to be deducted before tax for the part within 3% of the taxable income of individual income tax. (Caishui [26] No.171)

18. Since January 1, 27, For individuals through China Youth Social Education Foundation, China Staff Development Foundation, China Western Talent Development Foundation, COSCO Charity Foundation, Zhang Xueliang Foundation, Zhou Peiyuan Foundation, china confucius foundation, China Siyuan Engineering Foundation for Poverty Alleviation, China Symphony Development Foundation, China Hepatitis Prevention Foundation, China Film Foundation, China Environmental Protection Federation, china association of social workers, China Leprosy Prevention and Control Association, Sixteen organizations, such as China Association for Poverty Alleviation and Development and China Foundation for International Strategic Studies, used donations for public welfare relief, and the portion within 3% of the taxable income declared by individuals was allowed to be deducted before calculating personal income tax. (Caishui [27] No.112)

(4) The expenses of subscribing to and donating party newspapers and periodicals can be regarded as public welfare relief donations

The Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on the Pre-tax Deduction of Income Tax for Industrial and Commercial Enterprises Subscribing to Party Newspapers and Periodicals (Caishui [23] No.224) stipulates that

(V) Calculation of pre-tax deduction limit for donations

The specific calculation procedure of pre-tax deduction limit for charitable donations is as follows:

1. Adjust the income

Exclude the donation from the calculated income and calculate the taxable income before deducting the donation.

2. calculate the deduction limit

multiply the adjusted income by 3% to get the deduction limit.

3. calculate the deduction amount

compare the actual donation amount with the calculated deduction limit to determine the amount that can be deducted before tax. In other words, if the actual charitable donation of an individual in the current period is less than 3% of the income, it will be deducted according to the facts; If it exceeds the 3% deduction limit, it will be deducted according to the 3% limit.

calculation of pre-tax deduction limit for charitable donations

Zhang is a full-time writer and an individual resident. In 219, he earned 1 million yuan in remuneration, and there was no other income. Special deductions and special additional deductions (excluding charitable donations) totaled 7, yuan. In 219, Zhang donated a library in a primary school in a poverty-stricken area through a charitable foundation, with a donation amount of 2, yuan, and received a compliant donation bill from the charitable foundation. The foundation is eligible for pre-tax deduction of public welfare donations, and the portion of donations that does not exceed 3% of taxable income is allowed to be deducted according to the facts before personal income tax.

Question: Calculate the pre-tax deduction of Zhang's donation and the annual tax payable

Analysis shows that Zhang's income belongs to "income from remuneration for manuscripts", and his taxable income is = 1 million yuan * (1-2%) * 7% = 56, yuan.

Zhang's taxable income = 56, yuan-basic expenses: 6, yuan-special deductions: 7, yuan = 43, yuan.

the deduction limit of Zhang's charitable donation = 43, yuan * 3% = 129, yuan, which is lower than the actual donation amount of 2, yuan, so only 129, yuan can be deducted.

Zhang's annual tax payable = (43,-129, yuan) * applicable tax rate-quick deduction = 31, * 25%-31,92 = 43,33 yuan.

provisions on full deduction (deduction ratio is 1%)

(1) Donation to public welfare youth activity places

Caishui [2] No.21 Article 1 stipulates that donations made by individuals to public welfare youth activity places (including newly-built ones) through non-profit social organizations and state organs shall be fully deducted before personal income tax is paid.

(II) Donation to the Red Cross

The Notice on Issues Concerning Income Tax Policies for Donations by Enterprises and Other Social Forces to the Red Cross (Caishui [2] No.3) stipulates that donations made by individuals to the Red Cross through non-profit social organizations and state organs (including the China Red Cross) are allowed to be fully deducted when calculating and paying personal income tax.

The Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Relevant Issues Concerning Donation to the Red Cross by Enterprises and Other Social Forces (Caishui [21] No.28) further clarifies that:

The management system, offices and establishment of the Red Cross Society at or above the county level have been approved by the establishment department at the same level, and the contact person led by the government at the same level is the Red Cross Society which is fully qualified as a recipient and a donor. Donated to these Red Cross Societies and their "Red Cross undertakings", the donors are allowed to enjoy the preferential policy of full deduction when calculating and paying personal income tax.

the red cross societies at or above the county level (including the county level) hosted or affiliated by a government department are some red cross societies with the qualifications of recipients and donors. These Red Cross Societies and their "Red Cross undertakings" can only enjoy the preferential policy of full deduction when calculating and paying personal income tax if they accept donations and donations when the China Red Cross Society calls for major activities (subject to the documents of the Society). In addition, the acceptance of directional donation or donation must be approved by the Red Cross Society of China, and donors can enjoy the preferential policy of full deduction when calculating and paying personal income tax.

(III) Donations to service institutions for the elderly

Article 2 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Tax Policies for Service Institutions for the Elderly (Caishui [2] No.97) stipulates that donations made by individuals to welfare and non-profit service institutions for the elderly through non-profit social organizations and government departments shall be fully deducted before paying personal income tax.

(4) Donations to rural compulsory education or educational undertakings

Article 1 of the Notice on Taxpayers Donating Income Tax Policies to Rural Compulsory Education (Caishui [21] No.13) stipulates that donations made by individuals to rural compulsory education through non-profit social organizations and state organs are allowed to be deducted in full from their income before personal income tax.

Item 8 of Article 1 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Education Tax Policy (Caishui [24] No.39) stipulates that taxpayers' donations to education through non-profit social organizations and state organs in China are allowed to be fully deducted before personal income tax.

(V) Donation to China Health Express Foundation and other five units

Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Pre-tax Deduction of Donation Income Tax to China Health Express Foundation and other five units (Caishui [23] No.24) stipulates that individuals should make contributions to China Health Express Foundation, Sun Yefang Economic Science Foundation and china charity federation.