Charitable institutions are exempt from tax under the Inland Revenue Ordinance. As at 31 March 2005, the number of charities exempt from tax was 4,162, of which 266 charities were granted exemption during the year. The list of charities exempt from tax is available on IRD Homepage.
Donations to charities exempt from tax may be tax deductible. For the year of assessment 2003-04, the amounts of approved charitable donations allowed under Profits Tax and Salaries Tax were $1.28 billion and $2.89 billion respectively.