Can individuals donate masks for tax deduction?
The answer is yes, public welfare donation expenditure, can be fully deducted from their taxable income. Let's see how the relevant policy is stipulated.
According to the Ministry of Finance, the State Administration of Taxation on the support of the new coronavirus pneumonia epidemic prevention and control of the relevant donation tax policy announcement" (Ministry of Finance, the State Administration of Taxation Announcement No. 9 of 2020) the second article stipulates that: enterprises and individuals donate directly to the hospitals that undertake the task of epidemic prevention and control of the items used to cope with the epidemic of pneumonia infected by the new coronavirus, allowed to be fully deducted in calculating the amount of taxable income. .
It should be reminded that the policy provision is limited to items and does not include cash.
How do individuals file for public welfare donation deductions?
Individuals donating epidemic prevention items directly to hospitals undertaking epidemic prevention and control tasks are allowed to deduct the full amount when calculating taxable income. Donors need to obtain the hospital issued a donation acceptance letter, as a pre-tax deduction of the donation bill.
Related Policies: Individuals other public welfare donations deduction regulations
"The People's Republic of China *** and the State Individual Income Tax Law" Article 6, paragraph 2, provides that individuals will be part of the income of education and other public welfare donations, in accordance with the relevant provisions of the State Council deducted from the taxable income.
Article 24 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China stipulates that: The donation of income to educational and other public welfare undertakings by individuals as stated in the second paragraph of Article 6 of the Tax Law refers to the donation of income to educational and other public welfare undertakings, as well as to areas suffering from serious natural disasters and impoverished areas, by individuals through the social organizations and state organizations within the territory of China. The portion of the donation that does not exceed 30% of the taxable income declared by the taxpayer can be deducted from his or her taxable income.
Additionally, according to the "Ministry of Finance, State Administration of Taxation, Ministry of Civil Affairs on public welfare donations tax deduction notice" (Cai Shui [2008] No. 160), Article VIII: public welfare organizations and people's governments above the county level and their constituent departments and directly under the institutions in accepting donations, should be used in accordance with the level of administrative management by the Ministry of Finance or the provinces, autonomous regions, municipalities directly under the Central Government finance department. Printed by the Ministry of Finance or the provincial, autonomous regions and municipalities directly under the Central Finance Department of public welfare donations, and stamped with the unit's seal; individuals requesting donation notes, should be issued. Newly established foundations in the application for pre-tax deduction qualification of donations, the original fund donors can enjoy pre-tax deduction according to law with the donation of bills.