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Limits for claiming charitable deductions

The deduction of approved charitable donations under the tax regulations must be no less than $100, and the Inland Revenue Department will not allow more than one taxpayer to be deducted for the same donation, but will allow married couples to claim deductions against each other. If more than one person is eligible for a deduction for the same donation, the Inland Revenue Department will require all claimants to agree on who will ultimately make the claim. The Inland Revenue Department will also consider allowing the donation to be deducted in a fair manner if they fail to agree.

In addition, the deducted donations cannot exceed 35% of the taxpayer’s assessable income. In the case of a married couple combined, the deduction shall not exceed 35% of the combined assessable income of the couple. The deduction is also limited to 35% of the total income under the elective personal assessment. Please note that when calculating the deduction limit mentioned above, assessable income, combined assessable income or assessable income under personal assessment must first deduct their respective expenses and depreciation allowances 35% will be calculated later. If the taxpayer has both salaries income and operating business profits, he can only choose to apply for deduction of donations under one of the taxable entities.

The above information is for reference only. If in doubt, we welcome your tax inquiries

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