Tax Information : Charitable Donations and Tax-Exempt Charities

Individual and business donors who are chargeable to salaries tax, personal assessment or profits tax can claim deduction for the aggregate of approved charitable donation up to 35% (up to 25% for the years of assessment 2004/05 to 2007/08) of the assessable income or profits, as the case may be, in the basis period of a year of assessment. Such aggregate must not be less than $100. (Sections 16D and 26C of the Inland Revenue Ordinance)

"Approved charitable donation" means a donation of money to any charitable institution or trust of a public character, which is exempt from tax under section 88 of the Inland Revenue Ordinance, or to the Government, for charitable purposes. (Section 2 of the Inland Revenue Ordinance)

Members of the public may check the list of charitable institutions and trusts of a public character, which are exempt from tax under section 88 of the Inland Revenue Ordinance as to whether the donations can be claimed for tax deduction.

Charitable institutions and trusts of a public character may be granted tax exemption under section 88 of the Inland Revenue Ordinance.  The Department has issued an information pamphlet entitled "A tax guide for charitable institutions and trusts of a public character" for reference by the public.

The Charities Sub-committee of the Law Reform Commission published a consultation paper on charities on 16 June 2011. Related information and the consultation paper can be accessed on the Commission's website at www.hkreform.gov.hk/en/news/20110616.htm.