Donation tax deduction can be implemented in two ways: current tax deduction and year-end tax refund. Donation tax deduction must be implemented in the current period. It is best for taxpayers to donate before paying the salary and bonus of the current month. With the proof of donation and the explanation of the financial department of the unit, the tax of the current month can be reduced or exempted. You can apply for tax refund within the three-year validity period of the donation, but the procedure is extremely complicated.
1. Policy Provisions on Deduction of Donation Limit for Public Welfare Disaster Relief
According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, taxpayers donate their income to social welfare undertakings such as education and areas suffering from serious natural disasters and poverty-stricken areas through social organizations and state organs in China, and the part of their donation that does not exceed 30% of the taxable income declared by taxpayers can be deducted from their taxable income. Donation deduction limit = taxable income ×30% If the actual donation amount is greater than the donation limit, it can only be deducted according to the donation limit; If the actual donation amount is less than or equal to the donation limit, it will be deducted according to the actual donation amount. After deducting the actual donation amount (or donation limit), the formula for calculating the tax payable is: tax payable = (taxable income-donation amount allowed to be deducted) × applicable tax rate-quick deduction 2. Policy Provisions of Full Deduction Since 2000, the Ministry of Finance and State Taxation Administration of The People's Republic of China have relaxed the deduction limit of public welfare disaster relief donations and introduced the policy provisions of full deduction before tax. Individuals are allowed to deduct 65,438+000% (full amount) before individual income tax for donations to the following institutions through non-profit social organizations and government departments: (65,438+0) Donations to the Red Cross: According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Income Tax Policies for Enterprises and Other Social Forces to Donate to the Red Cross (Caishui [2000] No.30), Donations of individuals to the Red Cross through non-profit social organizations and state organs (including the Red Cross) (II) Donations to welfare and non-profit pension service institutions: The Notice of the Ministry of Finance on Tax Policies for Pension Service Institutions in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Caishui [2000] No.97) stipulates that donations made by individuals to welfare and non-profit pension service institutions through non-profit social organizations and government departments should be fully deducted before paying personal income tax. Service institutions for the elderly refer to welfare and non-profit institutions that provide life care, culture, nursing and fitness services for the elderly, mainly including: social welfare homes, nursing homes (nursing homes), service centers for the elderly, and apartments for the elderly (including nursing homes, rehabilitation centers, and nurseries for the elderly). (III) Donation to public welfare youth activity places (including new ones): The Notice of the Ministry of Finance on Income Tax and Business Tax Policies for Electronic Game Rooms in Youth Activity Places in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Caishui [2000] No.21) stipulates that donations made by individuals to public welfare youth activity places (including new ones) through non-profit social organizations and government departments are allowed to be deducted in full before paying personal income tax. Public welfare youth activity places refer to youth palaces, youth activity centers and other public welfare places that provide science, technology, culture, moral education, patriotism education and sports activities for young students. (IV) Donation to rural compulsory education: The Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Taxpayer's Income Tax Policy on Donation to Rural Compulsory Education (Caishui [20065438+0] No.65438+003) stipulates that individuals' donations to rural compulsory education through non-profit social organizations and state organs are allowed to be deducted from their income in full before paying personal income tax. The scope of rural compulsory education refers to rural towns (excluding towns where county and county-level municipal governments are located), rural primary and junior high schools and special education schools belonging to this stage. Taxpayers also enjoy the policy of full deduction before income tax for donations to rural compulsory education schools and high school schools. (V) Donation to Soong Ching Ling Foundation and other six units: Notice of the Ministry of Finance on Income Tax Policies for Donations of Six Units including Soong Ching Ling Foundation in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Caishui [2004] 172) stipulates that individuals are allowed to make donations for public welfare relief through Soong Ching Ling Foundation, china welfare institute, China Disabled Persons Welfare Foundation, China Foundation for Poverty Alleviation, china coal miner pneumoconiosis treatment foundation and China Environmental Protection Foundation in full before paying personal income tax. (6) Donation to China Medical and Health Development Foundation: The Notice of the Ministry of Finance on the Donation Income Tax Policy of China Medical and Health Development Foundation (Caishui [2006] No.67) stipulates that individuals who use China Medical and Health Development Foundation for public welfare disaster relief donations are allowed to deduct it in full before paying personal income tax. (VII) Donation to China Education Development Foundation: The Notice of the Ministry of Finance on the Income Tax Policy for Donation of China Education Development Foundation (Caishui [2006] No.68) stipulates that individuals who use China Education Development Foundation for public welfare disaster relief donations are allowed to deduct the full amount before paying personal income tax. (8) Donation to China Foundation for the Development of Ageing and other eight units: According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Income Tax Policies for Donations of China Foundation for the Development of Ageing and Other Eight Units (Caishui [2006] No.66), individuals who make charitable donations through China Foundation for the Development of Ageing, China Chinese Education Foundation, China Green Foundation and China Women's Development Foundation are allowed to care for the next generation of healthy sports foundation, China Biodiversity Protection Foundation, China Children and Teenagers Foundation and China. (9) Donation to the Federation of Trade Unions at or above the county level: According to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on the Pre-tax Deduction Policy for Donations of the Federation of Trade Unions at or above the county level (Caishui [2007] 155), from June 1 day to February 3, 2007, Individuals (10) donate to China Express Foundation and other five units: The Notice of the Ministry of Finance on Pre-tax Deduction of Donations from China Express Foundation and Other Five Units (Caishui [2003] No.204) stipulates that in order to support the development of social welfare undertakings such as rural medical and health care, economic popular science education, charity, legal aid and courageous acts, it is approved by the State Council. Donations made by individuals to China Health Express Foundation, Sun Economic Science Foundation, china charity federation and China Legal Aid Foundation and China Courageous Foundation from June 5438+10/October 65438 +0, 2003 (note: direct donations can also be made) are allowed to be fully deducted before personal income tax is paid. (1 1) Donate research and development funds to scientific research institutions and institutions of higher learning: According to the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Implementing the Decision of Central the State Council on Strengthening Technological Innovation and Developing High-tech to Realize Industrialization (Guo Shui Fa [2000] No.24), Income from individuals or individual industrial and commercial households (excluding incidental income and other income taxed by the financial department of the State Council) used to fund unrelated scientific research institutions and institutions of higher learning to research and develop new products, new technologies and new processes can be deducted from taxable income in the next month (income from wages and salaries) or the next period (income from annual taxation) or the current year (income from annual taxation). (12) Donation to earthquake-stricken areas 5 12: According to the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Collection and Management of Individual Income Tax for Donations to Earthquake-stricken Areas (Guo Shui Fa [2008] No.55), according to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations and relevant regulations, individuals are required to pay "5. 12".
1. Donations made by individuals to the disaster-stricken areas through withholding units shall be deducted by withholding units according to the facts with the summarized donation credentials issued by government agencies or non-profit organizations and the detailed list of personal donations recorded by withholding units.
Second, individuals donate directly to the disaster area through government agencies and non-profit organizations, and take the form of withholding taxes. Donors should show the donation credentials issued by government agencies and non-profit organizations to withholding units in time, and the withholding units will deduct taxes according to the facts; If an individual declares and pays taxes by himself, the tax authorities shall deduct it according to the facts according to law with the donation receipts issued by government agencies and non-profit organizations. Three, withholding units in the tax authorities to declare the full withholding of personal income tax, should be submitted to the government agencies or non-profit organizations issued by the donation receipt summary table (copy), the total amount of donations of each taxpayer and the current deduction of donations.
According to the above regulations, if the company donates to the Red Cross through non-profit social organizations and state organs, it can be deducted in full according to the regulations with the summary donation credentials issued by government organs or non-profit organizations and the personal donation list recorded by the withholding unit. If the company donates to the "5. 12" earthquake-stricken area through non-profit social organizations and state organs, the part of the donation amount that does not exceed 30% of the taxable income declared by the taxpayer may be deducted from the taxable income with the summary donation certificate issued by the government organ or non-profit organization and the personal donation list recorded by the withholding unit.
Because it is hoped that the project will not be fully deducted, the allowable deduction limit for donation is 6800 * 30% = 2040,8000 * 30% = 2400 and 3200*30%=960, totaling 5400. Regardless of the donation, the taxable income of wages and salaries (excluding five insurances and one gold) is 8800-2000 = the deductible exceeds 4000 yuan, so after deducting 20% of the expenses, the taxable income is10000 * (1-20%) = 8000, and the tax rate is 20%; The taxable income of remuneration is 4000-800=3200, the tax rate is 20%, minus 30%, and the actual tax rate is14%; However, the franchise and remuneration tax rate is fixed at 20%, and the salary is nine-level accumulated tax (in 2009). The tax rate decreases with the decrease of tax payable, and changes after donation. The total donation here is greater than the deduction limit of 600 yuan.
Scheme 1, individual tax = (6800-2040) *15%-125+8000 * 20%+3200 * 20% * (1-30%) = 2637.
In the second scheme, individual tax = (6800-2040) *15%-125+(8000-2400) * 20%+(3200-960) * 20% * (1-)