The Ministry of Finance, the State Administration of Taxation and the State Council's Poverty Alleviation Office recently issued the Announcement about Tax-deductible Income Tax Policies for Poverty-related Donations by Enterprises. The SAT drafted a separate Q&A paper to answer questions related to these tax policies.
How a company claims tax-deductible benefits if it makes donations to both poverty relief programs and other charity projects in 2019?
According to the Enterprise Income Tax Law, a company can claim tax deductions as much as 12% of annual profit on charity donations in a year, and any additional charity donations can become tax-deductible in the next three years. If a company makes donations to both poverty relief programs and other charity projects, poverty-related donations shall not be tax-deductible in the category of charity donations