The spring breeze is blowing and the tax benefits are warm
Donations to individual public welfare,
What are the pre-tax deductions in the state?
What about the specific policies?
Let's find out together today!
1. What is a public donation?
Donations made by individuals to public welfare charitable undertakings such as education, poverty alleviation, and poverty relief (hereinafter referred to as public welfare donations) through public welfare social organizations, people's governments at or above the county level and their departments and other state organs within the territory of the People's Republic of China (hereinafter referred to as public welfare donations) may be deducted in accordance with the relevant provisions of the Individual Income Tax Law when calculating the taxable income.
"Domestic public interest social organizations" as used in the preceding paragraph includes charitable organizations, other social organizations, and mass organizations that have been established or registered in accordance with law and have obtained pre-tax deduction qualifications for public interest donations in accordance with the requirements and procedures provided.
"Public interest charities" as used in the preceding paragraph shall comply with the provisions on the scope of public interest undertakings in article 3 of the "Public Welfare Donation Law of the People's Republic of China" or the provisions on the scope of charitable activities in article 3 of the "Charity Law of the People's Republic of China".
2. How to determine the amount of public welfare donation expenditure
According to the Individual Income Tax Law of the People's Republic of China and its implementing regulations, as well as the Announcement of the Ministry of Finance and the State Administration of Taxation on the Individual Income Tax Policy for Donations to Public Welfare and Charitable Undertakings (Announcement No. 99 of 2019 of the Ministry of Finance and the State Administration of Taxation), the amount of public welfare donation expenditure incurred by an individual shall be determined in accordance with the following provisions:
3. Pre-tax deduction policy for public welfare donations
Expenses incurred by individuals for public welfare donations may be deducted in the calculation of taxable income in accordance with the relevant provisions of the Individual Income Tax Law. These include the full deduction and the limit deduction:
Individuals who incur public welfare donation expenses that are deducted at 30% and fully deducted at the same time can choose the order of deduction.
Fourth, the declaration operation guide
01
Log in to the "Individual Income Tax" APP, click "Start Declaration" on the special page of "2023 Comprehensive Income Annual Settlement" on the homepage, complete the reading and confirmation of the standard declaration instructions, and enter the next step.
02
Confirm the basic information, click "Next", confirm the relevant expenses and other deductions, scroll to the bottom of the page, click to enter the "Donation Amount Allowed to Deduct", click "Add" in the upper right corner, and add the donation information.
Swipe left and right to see more
Tips: Individuals can check the list of public welfare social organizations that are eligible for pre-tax deduction of public welfare donations, their pre-tax deduction qualifications and their validity period through the official websites of the financial, taxation and civil affairs departments at or above the provincial level.
03
After filling in the information, click "Save" to return to complete the pre-tax deduction of donations. Be careful to choose the right deduction rate for your donation.
Tips: You can fill in one donation ticket at a time, if you have multiple donation tickets, you can click "Add" multiple times to fill in. After filling in all the donation bills, click "Distribution Deduction", manually enter the "Deduction Amount of Comprehensive Income Donation", click "Save" and return to complete the filling of the pre-tax deduction of donations.
After confirming that everything is correct, follow the system prompts to continue submitting the declaration.
5. Material retention
According to the Announcement of the Ministry of Finance and the State Administration of Taxation on the Individual Income Tax Policy for Donations to Public Welfare and Charitable Undertakings (Announcement No. 99 of 2019 of the Ministry of Finance and the State Administration of Taxation) and the Announcement of the Ministry of Finance and the State Administration of Taxation on the Individual Income Tax Policy for Donations to Public Welfare and Charitable Undertakings (Announcement No. 27 of 2020 of the Ministry of Finance), public welfare social organizations, people's governments at or above the county level and their departments and other state organs shall use the funds provided by the Ministry of Finance or provinces, autonomous regions, and other state organs in accordance with the administrative level when accepting donations. Donation bills for public welfare undertakings supervised (printed) by the finance department of the municipality directly under the Central Government, and stamped with the seal of the unit.
When donors make donations to public interest social organizations, people's governments at or above the county level and their departments, and other state organs, they shall provide proof indicating the fair value of the donated non-monetary assets;
Where individuals are unable to obtain donation receipts in a timely manner when making public welfare donations, they may temporarily deduct them with the payment vouchers of the public welfare donation banks, and provide a copy of the payment vouchers of the public welfare donation banks to the withholding agent.
Where government agencies, enterprises and institutions uniformly organize employees to carry out public welfare donations, taxpayers may deduct them with the donation receipts and employee details issued in summary.
If an individual handles the deduction of public welfare donations on his own or a withholding agent handles the deduction for public welfare donations for himself, he or she shall submit the "Individual Income Tax Deduction Schedule for Public Welfare and Charitable Donations" at the time of declaration. Individuals should keep the donation receipt (ID number must be listed) for a period of five years.