1. Corporate income tax preferential treatment for public welfare donations
1. General tax regulations: 12% pre-tax deduction
"People's Republic of China** *Article 9 of the Enterprise Income Tax Law of the People's Republic of China stipulates that public welfare donation expenditures incurred by enterprises within 12% of the total annual profits are allowed to be deducted when calculating taxable income. The so-called public welfare donations, according to the provisions of Articles 51 and 52 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China", refer to the donations made by enterprises through public welfare social groups or people's governments at or above the county level and their departments. , used for donations to public welfare undertakings stipulated in the "Public Welfare Donation Law of the People's Republic of China". Public welfare social groups should be foundations, charitable organizations and other social groups that meet the following conditions: (1) Registered in accordance with the law and having legal person status; (2) The purpose is to develop public welfare undertakings and not for profit; (3) ) All assets and their appreciation are owned by the legal person; (4) Income and operating balances are mainly used for businesses that meet the purpose of the legal person's establishment; (5) The remaining property after termination does not belong to any individual or profit-making organization; (6) No business operations Businesses that have nothing to do with the purpose of their establishment; (7) Have a sound financial accounting system; (8) Donors do not participate in the distribution of social group property in any form; (9) The financial and tax authorities of the State Council, together with the civil affairs department of the State Council and other registration management departments Other conditions specified.
It can be seen that the taxable scope of donations stipulated in the "Enterprise Income Tax Law of the People's Republic of China" and its implementation regulations is divided into three levels: First, non-public welfare donations shall not be derived from taxable income. Secondly, donations made directly by taxpayers to recipients without going through public welfare social groups or people's governments at or above the county level and their departments are not allowed to be deducted from taxable income; thirdly, donations that exceed the allowable deductions according to national regulations Proportional public welfare donations shall not be deducted from taxable income.
2. Special tax regulations: 100% full deduction is allowed
In addition to pre-tax public welfare donations according to the 12% deduction ratio, donations for specific matters, the Ministry of Finance , The State Administration of Taxation has introduced preferential tax policies, allowing full deduction before corporate income tax. For example, enterprises have made donations for specific matters such as post-disaster reconstruction in Wenchuan, hosting the Beijing Olympics and Shanghai World Expo, donations to Yushu earthquake-stricken areas, and support for post-disaster recovery and reconstruction in Zhouqu. It should be noted that these tax preferential policies generally have deadlines. For example, the deadline for donations to support post-Wenchuan earthquake reconstruction is December 31, 2008 (the same applies to personal income tax, value-added tax, and stamp duty mentioned below). Support The deadline for donations to the earthquake-stricken areas in Yushu and Zhouqu is December 31, 2012 (the same applies to personal income tax, value-added tax, and stamp duty mentioned below).
It should also be noted that before the new "Enterprise Income Tax Law of the People's Republic of China" and its implementation regulations came into effect on January 1, 2008, the Ministry of Finance and the State Administration of Taxation issued a series of A document that stipulates that certain charitable donations by enterprises can be fully deducted before corporate income tax. For example, Caishui [2006] No. 66, Caishui [2006] No. 67, and Caishui [2006] No. 68 all stipulate that social forces such as enterprises, institutions, social groups and individuals, through the public welfare organizations specified in the document, are used to Charitable relief donations are fully deductible before paying corporate income tax. After the "Enterprise Income Tax Law of the People's Republic of China" and its implementation regulations came into effect, the Ministry of Finance and the State Administration of Taxation issued in previous years "enterprises' expenditures for public welfare donations" that are inconsistent with the provisions of the new Enterprise Income Tax Law and its implementation regulations. The provision that "can be 100% deducted" has been abolished.
2. Personal income tax benefits for public welfare donations
1. General tax regulations: 30% pre-tax deduction
According to the "People's Republic of China*" ** According to the provisions of the Individual Income Tax Law of the People's Republic of China and its implementation regulations, taxpayers shall donate their income to education and other social welfare undertakings, as well as areas suffering from severe natural disasters and poverty-stricken areas through social groups and state agencies in China. The portion that does not exceed 30% of the taxable income declared by the taxpayer can be deducted from the taxable income. 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.
Similar to corporate income tax, donations made directly by taxpayers to recipients are not allowed to be deducted from personal income taxable income.
2. Special tax regulations: 100% full deduction allowed
Those who enjoy the preferential policy of full exemption from personal income tax mainly have the following situations:
1 It is a donation to the Red Cross cause
In order to support the development of the Red Cross cause, starting from January 1, 2000, donations are made to individuals through non-profit social groups and state agencies (including the Red Cross Society of China) Donations to the Red Cross cause are fully deductible when calculating personal income tax. ("Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax Policy Issues Concerning Donations by Enterprises and Other Social Forces to the Red Cross Cause" (Caishui [2000] No. 30); "Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Income Tax Policies Concerning Donations by Enterprises and Other Social Forces to the Red Cross Cause") Notice on Issues Related to Donations" (Finance and Taxation [2001] No. 28)).
The second is donations to public welfare youth activity venues
From January 1, 2000, donations to public welfare youth activities for individuals through non-profit social groups and state agencies Donations of premises (including new buildings) are fully deductible before paying personal income tax. Public welfare youth activity venues refer to public welfare venues such as youth palaces, youth activity centers and other off-campus activities that specifically provide young students with science and technology, culture, moral education, patriotism education, and sports activities. ("Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax and Business Tax Policies for Electronic Game Halls in Youth Activity Venues" (Caishui [2000] No. 21))
The third is donations to rural compulsory education< /p>
From July 1, 2001, donations made by individuals to rural compulsory education through non-profit social groups and state agencies are allowed to be fully deducted from the income before paying personal income tax. The scope of rural compulsory education mentioned in the document refers to rural primary schools and junior high schools in rural towns (excluding counties and towns where county-level municipal governments are located) and villages organized by the government and social forces, as well as special education schools belonging to this stage. Taxpayers' donations to schools that combine rural compulsory education with high schools also enjoy the pre-tax deduction policy for income tax stipulated in this document. ("Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax Policies Concerning Taxpayers' Donations to Rural Compulsory Education" (Caishui [2001] No. 103))
The fourth is donations to elderly service institutions
From October 1, 2000, donations made by individuals to welfare and non-profit elderly service institutions through non-profit social groups and government departments will be fully deductible when paying personal income tax. Elderly service institutions refer to welfare and non-profit institutions that specialize in providing life care, culture, nursing, fitness and other services to the elderly. They mainly include: elderly social welfare homes, nursing homes (nursing homes), elderly service centers, Apartments for the elderly (including nursing homes, rehabilitation centers, nurseries for the elderly), etc. ("Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policy Issues for Elderly Service Institutions" (Caishui [2000] No. 97))
The fifth is donations to China Health Express Foundation and other units
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Individual donations to China Health Express Foundation and Sun Yefang Economic Science Foundation, China Charity Federation, China Legal Aid Foundation and China Courage for Justice Foundation, Soong Ching Ling Foundation, China Welfare Institute, China Disabled Persons Welfare Foundation , China Foundation for Poverty Alleviation, China Coal Mine Pneumoconiosis Treatment Foundation, China Environmental Protection Foundation, China Aging Development Foundation, China Chinese Education Foundation, China Greening Foundation, China Women's Development Foundation, China Care for Next Generation Health Sports Foundation, China Biodiversity Conservation Foundation, China Children and Teenagers' Foundation, China Guangcai Foundation, China Medical and Health Development Foundation, China Education Development Foundation and other units are allowed to be fully taxed before personal income tax. amount deduction.
("Notice of the Ministry of Finance and the State Administration of Taxation on the Pre-tax Deduction of Income Tax on Donations to China Lifeline Express Foundation and Five Other Units" (Caishui [2003] No. 204), "Notice of the Ministry of Finance and the State Administration of Taxation on the Pre-tax Deduction of Donations to the Soong Ching Ling Foundation Notice on Income Tax Policy Issues on Donations from 6 Units and Other 6 Units" (Caishui [2004] No. 172), "Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax Policy Issues on Donations from 8 Units including the China Aging Development Foundation" (Caishui [2006] No. 66), "Notice of the Ministry of Finance and the State Administration of Taxation on the Income Tax Policy on Donations of the China Medical and Health Development Foundation" (Caishui [2006] No. 67), "Notice of the Ministry of Finance and the State Administration of Taxation on the Income Tax Policy on Donations of the China Education Development Foundation" Notice on Policy Issues" (Finance and Taxation [2006] No. 68)).
The sixth is donations to earthquake-stricken areas
For individuals’ donations to Wenchuan earthquake-stricken areas, Yushu earthquake-stricken areas and Zhouqu through public welfare social groups, people’s governments at or above the county level and their departments Donations to disaster-stricken areas are allowed to be fully deducted before personal income tax in the current year. ("Notice of the State Administration of Taxation on Issues Concerning the Collection and Administration of Personal Income Tax on Individual Donations to Earthquake-Stricken Areas" (Guoshuifa [2008] No. 55), "Relevant Tax Policies of the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation on Supporting Post-Earthquake Recovery and Reconstruction in Yushu" Notice on Issues" (Caishui [2010] No. 59), "Notice of the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation on tax policy issues related to supporting Zhouqu's post-disaster recovery and reconstruction" (Caishui [2010] No. 107).
3. Taxation provisions of goods and services tax on donations
1. General tax provisions
Looking at the various tax categories of goods and services tax, almost every tax category All have clear provisions on whether donations are deemed sales. For example, the "Implementation Rules of the Interim Regulations of the People's Republic of China on Value-Added Tax" stipulates that if an unit or individual business owner gives away self-produced, entrusted processing or purchased goods to other units and individuals for free, it shall be regarded as a sale of goods; "The People's Republic of China" The Interim Regulations of the People's Republic of China on Consumption Tax and its implementation rules stipulate that taxable consumer goods produced by taxpayers and used for gifts are included in the taxable scope of "used for other purposes"; and the Interim Regulations of the People's Republic of China and the State on Business Tax The Implementing Rules of the Regulations stipulates that if a taxpayer (unit or individual) donates real estate or land use rights to other units or individuals for free, it shall be regarded as a taxable act and shall pay relevant business tax in accordance with regulations; "The People's Republic of China and the National Development and Reform Commission" The Export Duty Regulations stipulate that, except for materials donated free of charge by foreign governments and international organizations, and other documents that stipulate that they are exempt from tariffs, other donations are taxable.
2. The benefits of goods and services tax on donations
The benefits of goods and services tax on donations mainly include the following aspects:
(1) Accept Donated imported scientific research and teaching supplies and supplies for the disabled are exempt from import value-added tax, consumption tax, and customs duties.
(2) Overseas donors donate daily necessities, food and drinking water, medical care, Materials such as teaching supplies and special environmental protection instruments are exempt from import value-added tax and import duties.
(3) The import of Chinese cultural relics that comply with the regulations and are obtained by the cultural relics management department of the State Council and state-owned cultural relics collection units by accepting donations from overseas institutions and individuals are exempt from customs duties, import value-added tax, and consumption tax.
(4) Materials donated free of charge by foreign governments and international organizations are exempt from tariffs. For goods that are subject to tariff reduction or exemption under this article, customs duties at the import link can still be reduced or exempted at the same time until otherwise provided by the State Council.
(5) Goods purchased domestically for free aid projects by foreign governments and 38 international organizations are exempt from value-added tax. Units selling tax-free goods are also allowed to use the input tax amount of tax-free goods in other domestically sold goods. Deducted from output tax.
(6) In order to encourage all sectors of society to support the post-disaster recovery and reconstruction of Wenchuan, Yushu, and Zhouqu, units and self-employed individuals will be required to use self-produced, entrusted processing or purchased goods through public welfare social groups, county-level or above Donations made by the people's government and its departments to the above-mentioned disaster-stricken areas are exempt from value-added tax, urban maintenance and construction tax and education surcharge.
IV. Property Behavior Tax Tax Provisions on Donations
Property behavior tax mainly involves deed tax, land value-added tax and stamp tax.
1. Deed tax
The "Interim Regulations of the People's Republic of China on Deed Tax" stipulates that for the donation of land use rights and house gifts, both units and individuals are subject to deed tax. people. However, no deed tax will be levied on legal heirs (including spouses, children, parents, brothers, sisters, grandparents, maternal grandparents) stipulated in the "Succession Law of the People's Republic of China" who inherit land and house ownership.
2. Land value-added tax
Land value-added tax Except for the following two types of real estate gifts, other gifts must pay land value-added tax in accordance with regulations. First, the property owner or the owner of the land use right donates the property right or the land use right to the immediate family member or the person with the direct support obligation; second, the owner of the property or the owner of the land use right donates the property right or the land use right through a non-profit social group or the state in China. The government agencies donate house property rights and land use rights to education, civil affairs, and other social welfare and public welfare undertakings. The above-mentioned social groups refer to the China Youth Development Foundation, Project Hope Foundation, Soong Ching Ling Foundation, Disaster Reduction Committee, Red Cross Society of China, China Disabled Persons' Federation, National Foundation for the Elderly, Association for the Promotion of Old Towns, and others established with the approval of the civil affairs department. Non-profit public welfare organization.
3. Stamp Duty
Stamp tax has four main preferential policies for donations. It is a document issued by the property owner to donate property to the government, social welfare units, and schools. The property rights transfer documents written by the property owner donating the property (items) to the 29th Olympic Games Organizing Committee are exempt from stamp tax; third, the property owner donating the property to the Shanghai World Expo The property transfer documents written by the bureau are exempt from the stamp duty payable by the property owner and the Shanghai World Expo Bureau; fourthly, in order to encourage all sectors of society to support the post-disaster recovery and reconstruction of Wenchuan, Yushu, and Zhouqu, property owners are required to directly transfer property (items) Donations or property transfer documents written by public welfare social groups, people's governments at or above the county level and their departments to disaster areas or disaster-stricken residents are exempt from stamp duty.