How to deduct personal income tax if an individual donates through a foundation?
If an individual donates through a foundation, any donation to the following organizations will be allowed to be deducted 100% before personal income tax ( Full amount) deduction:
1. Increased donations to the Red Cross cause.
2. Increase donations to welfare and non-commercial elderly service institutions.
3. Increase donations to public welfare youth activity venues (including new ones).
4. Increase donations for rural compulsory education.
5. Donate more to 6 organizations including Soong Ching Ling Foundation.
6. Increased donations to the China Medical and Health Care Development Foundation.
7. Donate more to the China Education Development Foundation.
8. Supported the China Aging Development Foundation and other 8 units to increase donations.
9. Increase donations to the federation of trade unions at or above the county level.
10. Increased donations to 5 units including China Health Express Foundation.
11. Donate more to the research and development funds of scientific research institutions and colleges and universities.
Article 24 of the "Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China": Donations of income by individuals mentioned in paragraph 2 of Article 6 of the Tax Law to education and other public welfare undertakings , refers to individuals donating their income to education and other social welfare undertakings, as well as areas hit by severe natural disasters and poverty-stricken areas through social groups and state agencies in China. The amount of donation that does not exceed 30% of the taxable income declared by the taxpayer can be deducted from the taxable income.
Calculation of deductions:
First calculate taxable income = monthly salary - expense deduction of 3,500 yuan
Process donations that allow full deduction, others The amount of donation allowed to be deducted = taxable income * 30, and the excess amount is not allowed to be deducted.
Personal income tax = (monthly salary - expense deduction of 3,500 yuan - donation) * applicable tax rate - quick calculation of deductions. Can an individual’s charitable donation to the Youth Development Foundation be deducted from personal income tax?
According to Paragraph 2 of Article 6 of the "Personal Income Tax Law" stipulates that the part of an individual's income donated to education and other public welfare undertakings shall be deducted from taxable income in accordance with the relevant provisions of the State Council. According to Article 24 of the "Implementation Regulations of the Individual Income Tax Law": The donation of income by individuals to education and other public welfare undertakings mentioned in paragraph 2 of Article 6 of the Tax Law refers to the donation of income by individuals to social institutions in China. Donations from groups and state agencies to education and other social welfare undertakings, as well as areas hit by severe natural disasters and poverty-stricken areas. The amount of donation that does not exceed 30% of the taxable income declared by the taxpayer can be deducted from the taxable income. In addition, according to Article 8 of the "Notice of the Ministry of Finance, the State Administration of Taxation and the Ministry of Civil Affairs on Issues Concerning the Pre-tax Deduction of Public Welfare Donations" (Caishui [2008] No. 160): Public welfare social groups and people at or above the county level*** and When accepting donations, their constituent departments and directly affiliated institutions shall use public welfare donation notes printed by the Ministry of Finance or the financial departments of provinces, autonomous regions, and municipalities directly under the Central Government according to the administrative level, and stamp them with the seal of the unit; when requesting donations from individuals, If a bill is issued, it shall be issued. After a newly established foundation applies for pre-tax deduction qualifications for donations, the donors of the original fund can enjoy pre-tax deductions according to law with their donation receipts. For some approved foundations, such as Rural Compulsory Education Foundation, Soong Ching Ling Foundation, China Welfare Society, Red Cross Society of China, etc., income donated by individuals can be deducted in full before tax when calculating personal taxable income according to regulations. .
How can individual donations to earthquake-stricken areas be deducted from personal income tax?
According to the "Individual Income Tax Law of the People's Republic of China" and its implementation regulations and relevant provisions, the individual income tax collection and management issues involved in individual donations to the 5.12 earthquake-stricken areas (hereinafter referred to as the disaster areas) are hereby notified as follows:
1. For donations made by individuals to the disaster area through the withholding unit, the withholding unit shall submit the summary donation receipt issued by the *** agency or non-profit organization, the individual donation detailed list recorded by the withholding unit, etc. When the withholding unit withholds and pays taxes, it shall be deducted in accordance with the law.
2. If an individual directly donates to the disaster area through a *** agency or non-profit organization and pays tax in the form of withholding, the donor should promptly present the withholding unit with a certificate issued by the *** agency or non-profit organization Donation receipts issued by the withholding unit shall be deducted in accordance with the law when withholding and paying taxes; if an individual declares taxes on his own, the tax authority shall deduct the donation receipt in accordance with the law based on the receipt of donation issued by a government agency or non-profit organization.
3. When the withholding unit declares personal income tax for all employees and the full amount to the tax authorities, it should also submit a summary donation receipt issued by the *** authority or a non-profit organization (photocopy (pieces), the total donation amount of each taxpayer in the unit and the donation amount deducted in the current period. Can an individual's direct donation to the school be deducted from personal income tax?
Can donations directly donated by individuals to the school be deducted from personal income tax? - Personal income tax cannot be deducted.
According to Article 24 of the "Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China": "Individuals will contribute their income to education and other social welfare undertakings through social groups and state agencies in China. As well as donations to areas hit by severe natural disasters and poverty-stricken areas, the portion of the donation that does not exceed 30% of the taxable income declared by the taxpayer can be deducted from the taxable income. "It can be seen that individuals pass their income through China. Donations made by domestic social groups and state agencies to education can be deducted from their taxable income, but donations made directly by individuals to Hope Primary Schools cannot be deducted before tax.
Secondly, donations made by individuals to education through social groups and state agencies in China shall be deducted before paying personal income tax in accordance with the provisions of the Personal Income Tax Law and its relevant regulations. The pre-tax deduction procedures are based on the "Notice of the State Administration of Taxation on Individual Income Tax Collection and Administration Issues Concerning Individual Donations to Earthquake-Stricken Areas" (Guoshuifa [2008] No. 55): "Individuals donate directly to disaster-stricken areas through government agencies and non-profit organizations. If the donation is taxed by withholding, the donor should promptly present the donation receipt issued by the government agency or non-profit organization to the withholding unit, and the withholding unit will deduct the tax in accordance with the law when withholding and paying the tax; If an individual declares taxes on his own, the tax authorities will deduct the donation in accordance with the law based on the receipt of donation issued by the government agency or non-profit organization.”
In addition, the amount donated to education can be deducted in full before personal income tax. Donation policies include:
"Notice of the Ministry of Finance and the State Administration of Taxation on Education Tax Policies" (Caishui [2004] No. 39) stipulates: "Taxpayers can donate to education through non-profit social groups and state agencies in China. Donations to education are allowed to be fully deducted before corporate income tax and personal income tax."
"Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax Policies for Taxpayers Donating to Rural Compulsory Education" (Finance and Taxation [2001] No. 103)
1. Donations made by social forces such as enterprises, institutions, social groups and individuals to rural compulsory education through non-profit social groups and state agencies are allowed to be income before paying corporate income tax and personal income tax. The full amount will be deducted from the amount.
2. The scope of rural compulsory education mentioned in this notice refers to primary schools in rural towns (excluding towns where county and county-level cities are located) and villages organized by governments and social forces. and junior high schools and special education schools falling under this stage. Donations made by taxpayers to rural compulsory education and high school schools also enjoy the pre-income tax deduction policy stipulated in this notice.
3. Non-profit social groups and state agencies that accept donations or transfer donations should use donation notes uniformly printed (supervised) by the central or provincial financial departments according to their financial affiliations, and add Stamp the financial seal of the unit accepting donations or transfers. The tax authorities will deduct tax income from donating units and individuals accordingly. The issue of pre-tax deductions for foundation donations.
Donation expenditures for public welfare undertakings are part of the "non-operating expenditures" of the enterprise. When the corporate income tax is calculated and settled in the following year, tax adjustments will be made, and this type of expenditure is part of the increase. This means that the tax department does not recognize it as part of the company's daily operating costs and cannot be deducted.
Income tax payable = (increase in total profit - increase or decrease) * 25
However, the implementation details of corporate income tax mention: Enterprises pass public welfare social groups or above the county level Donations made by the People's Government and its departments for public welfare undertakings within 12% of the total annual profits are allowed to be deducted when calculating taxable income.
This means that when according to regulations, the total amount of funds legally used for public welfare donations does not exceed the profit before interest and tax (the total profit, that is, the amount without deducting income tax expenses)12, a pre-tax deduction will be given. That is to say, if this part does not exceed the total profit of RMB 12, it does not belong to the increased portion. If it exceeds, it will be included in the increased portion according to the excess amount.
This should be clearer. How to deduct personal income tax for personal charitable donations in Shanghai
Donations should be made through the civil affairs department to obtain special donation invoices. Submit the invoice to the tax department for approval before deduction. How to deduct donations when paying personal income tax for labor remuneration
1. Donations made by individuals through public welfare social groups and state agencies to "education, public welfare undertakings, areas affected by natural disasters, and poverty-stricken areas", Donations that do not exceed 30% of the tax payable can be deducted from the taxable income
2. For individuals who donate to "Red Cross undertakings and rural compulsory education through public welfare social groups and state agencies" Donations to "public welfare youth activity venues" are allowed to be fully deducted from pre-tax income
3. They are used to research and develop new products, new technologies, The full amount of research and development funds incurred for new processes can be deducted from the taxable income when personal income tax is calculated next month or next time (income collected on a per-time basis) or in the current year (income collected on an annual basis). Any shortfall will be offset. It is not allowed to be carried forward for deduction
Another: 1, 2, it must be through "public welfare social groups and state agencies" otherwise it will be invalid. How to deduct individual charity donations before personal income tax
p>Article 24 of the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China" (Order No. 600 of the State Council of the People's Republic of China) stipulates: "The provisions of paragraph 2 of Article 6 of the Tax Law The donation of income by individuals to education and other public welfare undertakings refers to the donation of income by individuals to education and other social welfare undertakings, as well as areas hit by severe natural disasters and poverty-stricken areas through social groups and state agencies in China. The amount that does not exceed the taxable income declared by the taxpayer can be deducted from the taxable income. The calculation formula is: donation deduction limit = taxable income 30; if the actual donation amount is greater than the donation limit, It can only be deducted according to the donation deduction limit; if it is less than or equal to the donation deduction limit, it will be deducted according to the actual donation amount. In the case of deducting donations, the calculation formula for the tax payable should be: Tax payable = (taxable income - donation amount allowed to be deducted) Applicable tax rate - quick calculation deduction (Note: In addition to wages and salaries, production and operation of individual industrial and commercial households Income, except for income from contracted operations, leasing operations of enterprises and institutions, and income from labor remuneration, when this formula is applied to other income projects, quick calculation deductions will not be deducted.
)
Article 8 of the "Notice of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Civil Affairs on Issues Concerning the Pre-tax Deduction of Public Welfare Donations" (Caishui [2008] No. 160) stipulates: "Public welfare social groups and county When accepting donations, the people's government at or above the level and its constituent departments and directly affiliated institutions shall use public welfare donation notes printed by the Ministry of Finance or the financial departments of provinces, autonomous regions, and municipalities directly under the Central Government according to the administrative level, and stamp them with the unit's stamp. Seal; if an individual requests a donation note, it should be issued. After the newly established foundation applies for pre-tax deduction qualifications, the donor of the original fund can enjoy pre-tax deduction according to the law with the donation note. Do we accept individual donations?
Of course, individual donations are accepted.
The following reports are for reference:
The SEE Foundation was established in 2008. It is a non-public foundation initiated by nearly a hundred well-known domestic entrepreneurs. Its main donation income is Comes from about 200 regular SEE members, these entrepreneurs promise to donate no less than 100,000 yuan to the foundation every year, and this part of the income is about 30 million yuan every year.
In fact, the new strategic plan adopted by the SEE Foundation in 2011 shows that it plans to invest no less than 500 million yuan in public welfare funds in the environmental protection industry in five years. Now it seems that the funds it has raised are obviously still some way off from this. "The overall economic situation is not good, and I feel it will have a great impact on public welfare." Liu Xiaogang said.
The SEE Foundation is not the only non-public foundation facing fundraising pressure. Even the Shanghai True Love Dream Charity Foundation (hereinafter referred to as True Love Dream), which has a very professional financial background, cannot escape the effects of the economic downturn. influence.
Regarding its donation income, Wu Chong, secretary-general of the Shanghai True Love Dream Charity Foundation, said that from the beginning of 2012 to now, the foundation has raised 45 million yuan, an increase of about 40% year-on-year, and has completed Goals set at the beginning of the year. But "compared to past growth rates, 40 is considered very low."
Shanghai True Love Dream Charity Foundation was established in August 2008 with private property by domestic professionals who had been engaged in the financial industry. Because it discloses detailed audit reports and financial information every year, and has held public annual report release meetings since 2009, the True Love Dream Charity Foundation has become the first foundation in China to publicly release annual reports in accordance with the standards of listed companies.
However, even so, the foundation's investment still suffered losses in 2011. Although the total loss was less than 100,000 yuan, "I can clearly feel the economic collapse." Wu Chong said frankly.
Public foundations have “little impact”
Compared with non-public foundations, which have “no confidence”, public foundations with a *** background are less likely to be affected by the economic crisis. Much smaller, donation income has almost no impact.
"Corporate donations to the foundation have not decreased due to the economic crisis." Wei Jiuming, chairman of the China Children's Charity Relief Fund, said. He said that this year, the government received more than 80 million yuan in donations, including 655 corporate donations, more than 43 million yuan in donations in one day, and nearly 39 million in individual donations. Calculated in percentage terms, corporate donations accounted for 54% and individual donations accounted for 46%.
Although Tu Meng, secretary-general of the China Youth Development Foundation, said that the foundation did have "no confidence and felt unsafe" about the decline in the economic situation at first. But now it seems that "there is no big problem in reaching the target of fundraising this year (250 million yuan)." But he also said that corporate tax social welfare donations are the effect of wealth creation, and the economic downturn will definitely be affected.
Shenzhen One Foundation has also felt the pressure and challenges brought by the economic downturn, but it is gratifying that "large-amount donations have declined, while small-amount donations have been growing steadily and continuously." Secretary-General Yang Peng said that the One Foundation has now raised 34.7 million yuan and is expected to reach 45 million yuan by the end of the year, an increase of about 20% over last year.
But Yang Peng also admitted that even so, when conducting structural analysis, he found that corporate donations had declined.
The decline in corporate donations is not a decline in the number of corporate donations, but a decline in the amount of donations from individual companies. "For example, it was originally promised to donate 1 million, but because the economy is not good this year, only 300,000 will be given."
As a large and established foundation, the China Foundation for Poverty Alleviation has not been affected by the economic situation and instead They made a big deal, "They made 1 billion." Wang Zhenyao said with a smile.
Wang Zhenyao said that on October 17 this year, the China Poverty Alleviation Foundation and the China Development Bank signed a micro loan poverty alleviation pilot cooperation agreement, increasing the amount of cooperation between the two parties from 200 million yuan to 1 billion yuan, for Implementing a nationwide microfinance poverty alleviation project, this is currently the largest wholesale loan in the domestic microfinance field.
Dou Ruigang, executive secretary-general of Tencent Charitable Foundation, was not surprised by this. He said that in China, most of the motivations for cooperation between enterprises and public welfare organizations are communication and games with ***, that is, through Donations to charity organizations are exchanged for benefits. The reason is that "public foundations have unlimited resources, and they can give various honors and hidden benefits to donating companies, so many large companies will choose to donate to traditional public foundations."
Tencent Charity Foundation was initiated by Tencent and established in June 2007. When the foundation was established, the board of directors promised to donate no more than a certain percentage of the company's annual profits to the foundation. "So our foundation doesn't have any fundraising problems." Dou Ruigang said with a smile.
Dou Ruigang also analyzed that from the perspective of the United States, whether the economic situation is good or bad, the foundation will never discuss financing issues. It will only say that because the stock market is not good, investment returns are low, so it can only reduce Funding expenditures. “The foundation’s financing problems just show that there are no foundations in the typical American sense in China,” Dou Ruigang said.
Getting out of the financing dilemma
Since 2004, non-public foundations in my country have developed rapidly. As of November 20, the number of non-public foundations in China reached 1,591 in 2012. However, because the students are not nobles, the issue of financing has always been the "hard truth" in the development of non-public foundations, and during times of tight economic conditions, this issue becomes particularly important.
Wei Jiuming shared three fundraising experiences of the Children’s Charity Association at the venue: First, project projects first and then raise funds. "Projects are the foundation, combining aid and fundraising. For example, the foundation has designed a project called 'Hope to Go Home' to raise funds for children who have been trafficked, and the assisted children will receive both survival assistance and medical assistance*** The one-time assistance is not more than 50,000 yuan. We design this project, clearly explain the money, and then raise funds from the society with the project."
The second is "cooperative fund-raising", that is, the establishment of special funds. Wei Jiuming gave an example. A boss donated 50,000 yuan to rescue children in western China, so the foundation set up a "Western Children's Rescue Fund" to let the boss manage it himself, and the foundation assigned full-time staff to work together.
The third method is to adhere to the principle of "treating donors as God" and provide good services to donors and recipients. "The foundation requires that after receiving a donation, it must Send thank-you letters and invoices to donors, including those who donate a dollar, to thank them for their contributions to the foundation and society. Make the whereabouts of all donations public in a timely manner, and use openness and transparency to increase the credibility of the organization. ” p>