Charitable Donations in China for Foreigners

Want to make charitable donations in China? Foreigners and foreign companies can donate, but there are specific rules to follow for tax benefits and compliance.

Who Can Donate?

• Foreign individuals
• Foreign companies
• Foreign organizations
• No restrictions on donor nationality

Eligible Recipients

For tax-deductible donations:

• Registered charitable organizations
• Public welfare social organizations
• Government departments (for specific purposes)
• Must have donation receipt qualification

Tax Benefits

For Individuals

• Deduct up to 30% of taxable income
• Must donate to qualified organizations
• Need official donation receipt

For Companies

• Deduct up to 12% of annual profit
• Excess can carry forward 3 years
• Must be to qualified recipients

Donation Procedures

1. Identify qualified recipient organization
2. Verify their donation receipt qualification
3. Make donation (cash or in-kind)
4. Obtain official donation receipt
5. Keep records for tax purposes

Types of Donations

Cash Donations

• Most straightforward
• Clear valuation
• Easy documentation

In-Kind Donations

• Goods, equipment, property
• Valuation required
• May have tax implications

Cross-Border Donations

Donating from abroad:

• Foreign exchange considerations
• May need to go through specific channels
• Documentation requirements

Due Diligence

Before donating, verify:

• Organization's registration status
• Receipt qualification
• Track record and reputation
• How funds will be used

Common Issues

• Donating to unqualified organizations
• Missing proper receipts
• Unclear fund usage
• Cross-border transfer complications