The deduction of personal charitable donation limit refers to the taxpayer's charitable donation, and the part of which the donation amount does not exceed 30% of the taxpayer's declared taxable income can be deducted from his taxable income.
Including the following specific circumstances:
(a) housing donated by individuals as public rental housing.
Paragraph 2 of Article 5 of the Announcement of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Preferential Tax Policies for Public Rental Housing (Announcement No.619 of State Taxation Administration of The People's Republic of China of the Ministry of Finance) stipulates that if an individual donates a house as a public rental housing and complies with the provisions of tax laws and regulations, the portion of his charitable donation expenditure that does not exceed 30% of his declared taxable income shall be deducted from his taxable income (the implementation period is 20650).
(2) 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 [2000]4 1No.) stipulates that donations to propaganda and cultural undertakings shall continue to be encouraged. Donations provided by social forces to the following publicity and cultural undertakings through non-profit public welfare organizations or state organs approved by the state belong to the scope of public welfare donations. Upon examination and approval by the tax authorities, when taxpayers pay enterprise income tax, the part within 10% 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 30% of the taxable income declared by the taxpayer can be deducted from its taxable income.
1. Donate to the national key symphony orchestra, ballet, opera company, Peking Opera company 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 of social welfare activities, projects and cultural facilities accepted by non-production and operation cultural centers and mass art museums belonging to the cultural administrative department.
(3) Donations to education, poverty alleviation, poverty alleviation and other charitable undertakings through China's public welfare social organizations and state organs.
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 deduct the part that does not exceed 30% of the taxable income declared by taxpayers.
Article 19 of the Regulations for the Implementation of the Individual Income Tax Law specifically explains that individuals donate their income to public welfare charities such as education, poverty alleviation and poverty alleviation, which means that individuals donate their income to public welfare charities such as education, poverty alleviation and poverty alleviation through public welfare social organizations and state organs in China.
The specific policies and regulations on deducting 30% from the donation limit of public welfare charities such as education, poverty alleviation and poverty alleviation are as follows:
1. Taxpayers donate their taxable income to education and civil affairs departments through Guanghua Science and Technology Foundation, as well as donations to public welfare and disaster relief in areas suffering from natural disasters and poverty-stricken areas. The part of personal taxable income below 30% is allowed to be deducted before personal income tax. (Guoshuihan (No.200 1) 164)
2. Taxpayers' public welfare and relief donations to the China Population Welfare Foundation, as well as the portion of taxable income declared by individuals within 30%, are allowed to be deducted before personal income tax. (Guo Shui Fa (200 1) 2 14)
3. According to the relevant provisions of the Individual Income Tax Law of People's Republic of China (PRC), the taxpayer's individual income tax is less than 30% of the taxable income, which is allowed to be deducted before tax. (Guoshuihan [2002] No.973)
4. For the public welfare disaster relief donations made by taxpayers through China Glory Industry Promotion Association, the part of taxpayers' taxable income within 30% is allowed to be deducted before paying personal income tax. (Guoshuihan [2003] No.78)
5. According to the Individual Income Tax Law of People's Republic of China (PRC), the taxpayer's donation to China Legal Aid Foundation and the money used for legal aid can be deducted before income tax according to the proportion stipulated by tax laws and regulations. (Guoshuihan [2003] No.722)
6. Taxpayers' donations to China Environmental Protection Foundation can be included in the scope of public welfare relief donations, and the part donated by individual income tax taxpayers that does not exceed 30% of taxable income can be deducted before tax. (Guoshuihan [2003] No.762)
7. For taxpayers' donations through the chinese primary health care Foundation, the portion of personal taxable income that does not exceed 30% is allowed to be deducted before personal income tax. (Guoshuihan [2003] No.763)
8. Taxpayers' donations for public welfare disaster relief made through Yan Baohang Education Foundation, and the portion of taxable income declared by individuals within 30% may be deducted before individual income tax. (Guoshuihan [2004] No.3465438 +0)
9. According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, the portion of the taxpayer's donation to the China Senior Prosecutor Education Foundation that is less than 30% of the taxable income of the declared individual income tax is allowed to be deducted before tax. (Guoshuihan [2005] No.952)
10. According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, if the taxpayer's donation to the Emergency Rescue Promotion Center of the Ministry of Civil Affairs is less than 30% of the taxable income of individual income tax, it is allowed to be deducted before tax. (Guoshuihan [2005] No.953)
1 1. Individuals use China Financial Education Development Foundation, China Association for the Promotion of International NGO Cooperation, China Social Workers Association Orphan and Disabled Children Relief Fund Management Committee, China Development Research Foundation, Tan Kah Kee Science Award Foundation, China Friendship and Peaceful Development Foundation, China Literature Foundation, China Agricultural Science and Education Foundation, China Children's Culture and Art Foundation, and China Public Security Heroes Foundation to make public welfare relief donations, and no more than 30% of individuals should declare. (Caishui (2006) No.73)
12. For the public welfare disaster relief donations provided by individuals for AIDS prevention and treatment through non-profit social organizations and state organs, the taxable income of individuals who are allowed to declare personal income tax is deducted before tax. (Caishui (2006) No.84)
13. According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, the portion of public welfare and relief donations made by taxpayers through Xiangjiang Social Assistance Fund that does not exceed 30% of the taxable income of individual income tax declaration is allowed to be deducted before individual income tax. (Guoshuihan [2006] No.324)
14. According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, the charitable and relief donations made by taxpayers through the China Economic Reform Research Foundation, which do not exceed 30% of the taxable income of the declared individual income tax, are allowed to be deducted according to the facts before the individual income tax. (Guoshuihan [2006] No.326)
15. According to the relevant provisions of the Individual Income Tax Law of People's Republic of China (PRC), the portion of charitable and relief donations made by taxpayers through the China Foundation for International Studies and Academic Exchanges that does not exceed 30% of the taxable income of the declared individual income tax is allowed to be deducted according to the facts before the individual income tax. (Guoshuihan [2006] No.447)
18. Taxpayers are allowed to deduct not more than 30% of the taxable income of the declared individual income tax for charitable and relief donations made through china narcotics control foundation before paying individual income tax. (Guoshuihan [2006] 1253)
16. Donations made by individuals for public welfare assistance through China Overseas Chinese Economic and Cultural Foundation, China Minority Culture and Art Foundation, China Cultural Relics Protection Foundation and peking university education foundation are allowed to be deducted before the personal income tax is calculated and paid. (Caishui [2006] 164No.)
17. Individuals who donate technology innovation funds for small and medium-sized enterprises to the Technology Innovation Fund Management Center of the Ministry of Science and Technology through public welfare social organizations and state organs are allowed to deduct part of their taxable income of personal income tax before tax. (Caishui (2006)No. 17 1)
18. Since 1, since 2007, 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 Social Workers Association, China Leprosy Prevention Association, China Association for Poverty Alleviation and Development, China Foundation for International Strategic Studies and other 16 units are used for public welfare disaster relief donations, and the part within 30% of the taxable income declared by individuals is allowed to be deducted before calculating personal income tax. (Caishui (2007)No. 1 12)
(4) The cost of subscribing to and donating party newspapers and periodicals can be regarded as public welfare donations for disaster relief.
The Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Pre-tax Deduction of Income Tax for Industrial and Commercial Enterprises Subscribing to Party Newspapers and Journals (Caishui [2003] No.224) stipulates that the expenses donated by industrial and commercial enterprises to poverty-stricken areas by subscribing to People's Daily and Qiushi magazine are regarded as public welfare disaster relief donations, and are deducted before tax when paying corporate income tax and personal income tax.
(V) Calculation of pre-tax deduction limit for donations
The specific calculation procedure of the pre-tax deduction limit for charitable donations is:
1. adjusted income
Deduct the donation amount from the calculated income, and calculate the taxable income before deducting the donation.
2. Calculate the deduction limit
Multiply the adjusted income by 30% to get the deduction limit.
Calculate the deduction
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 the individual in the current period is less than 30% of the income, it will be deducted according to the facts; If it exceeds the 30% deduction limit, it will be deducted according to the 30% limit.
Calculation of Pre-tax Deduction Limit of Case Charity Donation
Zhang, a full-time writer and individual resident. 20 19 years, the remuneration was 1000000 yuan, and there was no other income. Special additional deduction and special additional deduction (excluding charitable donations) total 70,000 yuan. On 20 19, Zhang donated a library to a primary school in a poor area through a charitable foundation, with a donation amount of 200,000 yuan, and received a donation bill from the charitable foundation. The foundation meets the pre-tax deduction conditions for public welfare donations, and the donation does not exceed 30% of taxable income, which is allowed to be deducted according to the facts before personal income tax.
Question: Calculate the pre-tax deduction and annual tax payable of a donation.
The analysis shows that Zhang's income belongs to "income from remuneration for manuscripts", and his taxable income = 1 ten thousand yuan * (1-20%) * 70% = 560 thousand yuan.
Zhang's taxable income = 560,000 yuan-basic expenditure: 60,000 yuan-special deduction: 70,000 yuan = 430,000 yuan.
Deduction limit of Zhang charitable donation = 430,000 yuan * 30% =129,000 yuan, which is lower than the actual donation amount of 200,000 yuan, and only129,000 yuan can be deducted.
Annual tax payable = (430,000 yuan-129,000 yuan) * applicable tax rate-quick deduction = 301000 * 25%-31920 = 43,330 yuan.
2. Full deduction (deduction ratio is 100%)
(1) Donate public welfare youth activity places.
Article 1 of Caishui [2000] No.21stipulates that donations provided by individuals to public welfare youth activity places (including new ones) through non-profit social organizations and state organs shall be fully deducted before paying personal income tax.
(2) Donations to the Red Cross cause
The Notice on Issues Concerning Income Tax Policies for Enterprises and Other Social Forces to Donate to the Red Cross (Caishui [2000] No.30) stipulates that donations made by individuals to the Red Cross through non-profit social organizations and state organs (including the China Red Cross) shall 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 Issues Related to Donation of Enterprises and Other Social Forces to the Red Cross (Caishui [20065438+0] No.28) further clarifies that:
The management system, offices and establishment of the Red Cross at or above the county level (including the county level) shall be examined and approved by the establishment department at the same level, and the contact person led by the government at the same level shall be the Red Cross with full donee and donor qualifications. Donations to these Red Cross Societies and their "Red Cross undertakings" allow donors to enjoy the preferential policy of full deduction when calculating and paying personal income tax.
The Red Cross Society at or above the county level (including the county level) sponsored or affiliated by government departments is an integral part of the Red Cross Society and is qualified as a donor. 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 (subject to the documents of the Society) when the China Red Cross Society calls for major events. In addition, the acceptance of targeted donations or donations 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.
(three) donations to the elderly service institutions
Article 2 of the Notice of the Ministry of Finance, People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China, on the Tax Policy of Pension Service Institutions (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 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' Donation to Rural Compulsory Education (Caishui [200 1] 103) 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 individual income tax.
Item 8 of Article 1 of the Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China of the Ministry of Finance on Education Tax Policy (Caishui [2004] No.39) stipulates that taxpayers' donations to education through non-profit social organizations and state organs in China are allowed to be deducted in full before personal income tax.
(5) Donate to China Health Express Foundation and other five units.
The Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Pre-tax Deduction of Donations to China Health Express Foundation and Other Five Units (Caishui [2003] No.204) stipulates that individuals are allowed to deduct all donations to China Health Express Foundation, Sun Economic Science Foundation, china charity federation, China Legal Aid Foundation and China Courageous Foundation before personal income tax.
(6) Donate money to six units including Soong Ching Ling Foundation.
The Ministry of Finance's Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Income Tax Policies for Donations from Six Units, including Soong Ching Ling Foundation (Caishui [2004] 172) stipulates that donations made by individuals through Soong Ching Ling Foundation, china welfare institute, China Welfare Foundation for the Disabled, China Foundation for Poverty Alleviation, china coal miner pneumoconiosis treatment foundation and China Environmental Protection Foundation are allowed to be fully deducted before personal income tax.
(7) Donated to 8 units including China Foundation for the Development of Aging.
The People's Republic of China (PRC) Ministry of Finance State Taxation Administration of The People's Republic of China's Policy on Donation Income Tax for Eight Units (Caishui [2006] No.66) stipulates that individuals who use the China Foundation for Ageing Development, the China Chinese Education Foundation, the China Green Foundation, the China Women's Development Foundation, the China Care for the Next Generation Healthy Sports Foundation, the China Biodiversity Conservation Foundation, the China Children and Teenagers Foundation and the China Glory Foundation for public welfare relief donations are allowed to do so.
(8) Donation to China Medical and Health Development Foundation
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 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 in full before paying personal income tax.
(9) Donate to China Education Development Foundation.
The Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Donation Income Tax Policy of China Education Development Foundation (Caishui [2006] No.68) stipulates that individuals who donate for public welfare through China Education Development Foundation are allowed to deduct the personal income tax in full before paying it.