Tax
Information : Approved charitable donations
Eligibility for Deduction
You may claim a deduction for a donation of money to
charities that are exempted from tax under section 88 of the Inland
Revenue Ordinance or to the Government for charitable purposes.
You may also claim a deduction for the approved charitable donation
made and not claimed by your spouse (see Example).
Examples of payments not accepted as allowable donations:
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Payment for purchase of lottery tickets or raffle
tickets |
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Payments for admission tickets for film shows or charity shows |
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Payments for a grave space |
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Payments made for services such as saying prayers, reservation
of a space for ancestral worship |
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Purchase of goods in bazaar |
Amount of allowable deduction
The aggregate deduction of approved charitable donations
must not be less than $100 and shall not exceed 25% of the income
after allowable expenses and depreciation allowances or assessable
profits, as from the year of assessment 2003/04 onwards (for year
of assessment prior to 2003/04, the limit is 10% instead). The deduction
ceiling is raised from 25% to 35% as from the year of assessment
2008/09. If you have more than one source of income, the unused
portion of approved charitable donations under a tax type (e.g.
profits tax) may be deductible under personal assessment (see Example).
How to lodge a claim for deduction
Enter the total amount of approved charitable donations
made during the year in the tax return for the relevant year of
assessment. Do not attach any documentary evidence to your tax return.
Donations already claimed in your spouse's return should be excluded.
To substantiate your deduction claim and for ascertainment of the
proper amount deductible, you have to ask for donation receipts
issued by the tax-exempt charities and the Government, and retain
them for 7 years. Production of donation receipts for examination
is required in the event your case is selected for post assessment
review.
How to check whether my donations will qualify
for a tax deduction
You can check whether your donations will qualify for
a tax deduction by searching
for or browsing the
list of tax-exempt charities.
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