View this page in: 简体中文版Apr 2016, Issue 12
Charity related tax reliefs need to be further clarified as the Charity Law comes into effect on 1 September 2016
The recently completed twelfth National People's Congress (NPC) has approved the Charity Law. As a fundamental and comprehensive piece of legislation for the charitable sector, the Charity Law has attracted a lot of attention from the public during the legislating process and its related tax policies has always been a focus of discussion.
We notice that most of the tax related articles in the Charity Law only provides general principles without any detailed explanations, except for Article 76 which specifies that charitable donations which exceeds the annual deductible limit are allowed to e be carried forward for three years. Therefore, there are a lot of work that the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) need to work on, such as detailed implementation procedures for each tax relief, to ensure that the existing tax relief policies are implemented appropriately. In addition, it is worth noting whether the Chinese Government would use the promulgation of the Charity Law as an opportunity to expand the scope of tax reliefs for charities. Other issues of China Tax/Business News Flash
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