Do donations need to be taxed in China?

Whether to pay taxes depends on the situation. Donations are divided into personal donations and corporate donations. 1. Individual donations (in three cases) 1. Public donations provided by individuals to the Red Cross cause, rural compulsory education and public welfare youth activity places through non-profit social organizations and state organs are allowed to be fully deducted from pre-tax income when calculating and paying personal income tax. 2. Individuals donate their income to education and other social welfare undertakings as well as areas and poverty-stricken areas suffering from serious natural disasters through social organizations and state organs in China. Donations that do not exceed 30% of the taxable income declared by taxpayers can be deducted from their taxable income. 3. It is not allowed to deduct the donation directly donated to the donee.

Two. Corporate donation corporate donation expenditure is divided into public welfare donation expenditure and non-public welfare donation expenditure. Public welfare donation expenses that do not exceed 12% of the total annual accounting profit are allowed to be deducted according to the facts, and the excess and non-public welfare donation expenses are not allowed to be deducted before tax, and the taxable income should be increased.

People's Republic of China (PRC) Public Welfare Donation Law Article 24 Companies and other enterprises that donate property to public welfare undertakings in accordance with this law shall enjoy preferential corporate income tax in accordance with the provisions of laws and administrative regulations. Article 25 Natural persons and individual industrial and commercial households who donate property to public welfare undertakings in accordance with the provisions of this Law shall enjoy preferential personal income tax in accordance with the provisions of laws and administrative regulations. Article 26 If overseas donates materials for public welfare undertakings to public welfare social organizations and public welfare non-profit institutions, import duties and import value-added tax shall be reduced or exempted in accordance with the provisions of laws and administrative regulations. Article 27 The local people's government shall give support and preferential treatment to the donated projects. Article 28 If the donee changes the nature and use of the donated property without the permission of the donor, the relevant department of the people's government at or above the county level shall order it to make corrections and give a warning. If the people's government at or above the county level refuses to make corrections, after soliciting the opinions of the donors, the donated property will be managed by public welfare social organizations or public welfare non-profit institutions with the same or similar purposes. Twenty-ninth misappropriation, embezzlement or corruption of donated funds and materials, by the relevant departments of the people's governments at or above the county level shall be ordered to return the money and materials used, and impose a fine; The person directly responsible shall be dealt with by his unit in accordance with the relevant provisions; If a crime is constituted, criminal responsibility shall be investigated according to law. Donations recovered and recovered in accordance with the preceding paragraph shall be used for the original purpose and purpose of donation. Thirtieth in the donation activities, one of the following acts, shall be punished in accordance with the relevant provisions of laws and regulations; If the case constitutes a crime, criminal responsibility shall be investigated according to law: (1) evasion of foreign exchange or fraudulent purchase of foreign exchange; (2) tax evasion; (three) engaged in smuggling activities; (4) Whoever sells, transfers or uses donated materials imported with tax reduction or exemption for other purposes in China without the permission of the customs shall pay back the tax. Article 31 If the staff of the recipient unit abuses their powers, neglects their duties or engages in malpractices for selfish ends, resulting in heavy losses to the donated property, the unit to which they belong shall handle it in accordance with relevant regulations; If a crime is constituted, criminal responsibility shall be investigated according to law.