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Recognize the tax deduction strategy for charitable donations, can the spouse use the maximum donation limit?

During the current tax season, many Hong Kong citizens will receive tax returns (green bombs) from the Inland Revenue Department one after another. Before knowing the tax payable for the current tax year, they should know how to exhaust their tax strategies. Save tax for yourself. When it comes to the tax deduction, although many people may immediately think of the “three treasures of tax deduction”: deferred annuity, MPF voluntary contributions, and voluntary medical insurance, in fact, the more commonly used tax deduction scheme may be a donation tax deduction. Therefore, this article will explain in detail how to get tax relief by accrediting charitable donations. There are many common questions, such as whether church giving is eligible for the tax deduction, and the answers will be found below.

Are charitable donations tax-deductible?

There are many ways to deduct taxes in Hong Kong. In one of salaries tax, profits tax, or personal assessment income, you can apply for tax relief by donating to accredited voluntary organizations or non-profit charities.

However, these donations must meet certain conditions before they can be deducted, and the use of donations as a tax deduction is limited. Currently, the deduction cannot be more than the taxpayer’s “income less deductible expenses and depreciation allowances for the tax year.”; or assessable profits; assessable income; or 35% of profits”.

Which donations are tax-deductible?

Approved donations mentioned above are subject to certain conditions. By the nature of the donation, donations to tax-exempt charities or to the government for charitable purposes can be tax-deductible, including environmental groups, religious And cultural groups, educational service organizations, youth and children service groups, elderly service groups, specific disease concern groups, animal conservation groups, sports groups, and the promotion of innovation and technology development funds, etc.

All qualified charities or trusts of public nature are listed in accordance with Section 88 of the Inland Revenue Ordinance. If you want to check the list, you can go to the following government’s “List of Charities and Charitable Trusts Exempted from Taxation” URL for details.

In terms of the amount of donations, the total amount of donations claimed for tax deduction shall not be less than HK$100, and once the taxpayer is assessed under personal assessment and has more than one source of income, the total amount of approved charitable donations cannot be A deduction is obtained under one of the taxes and the remainder can be claimed under personal assessment.

Can I claim a tax deduction for recognized charitable donations for my spouse?

If a married person (not living apart) makes an approved charitable donation when filing their tax return, they can claim a tax deduction for the other. If one party’s donation deduction exceeds the limit and there are charitable donations that have not been deducted, the other party can enjoy these donation deductions, using up the total donations of both parties.

Are donations and donations tax-deductible?

Although it is clearly stated on the government website, the donations placed in the offering bags during church worship and the sesame oil money placed in temples are not deductible. However, if the above organizations are recognized charities listed in Section 88 of the Inland Revenue Ordinance and the amount is more than HK$100, whether in cash or not, as long as they are willing to issue a donation receipt to the taxpayer, then at the time of tax declaration, they will Whether to apply for a tax deduction for donations based on this evidence.

The above information is for reference only. If you have any questions about tax declaration and accounting, we welcome your inquiries.

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