In China, individual donations do not need to pay personal income tax, and the state has certain preferential tax policies for charitable donations. For example, individuals who donate to charitable organizations can enjoy a certain pre-tax deduction or after-tax tax exemption policy when reporting personal income tax. However, it should be noted that if the source of the money involved in the donation is unknown, or there are other violations, it may be regarded as illegal income by the tax authorities, and it is necessary to pay corresponding taxes and bear corresponding legal responsibilities.
Donation income generally includes the following processes:
1. Donors can choose to donate to charities, non-profit organizations, educational institutions and medical institutions.
2. Donors choose the donation method and amount: Donors can choose online or offline donation methods, such as bank transfer, Alipay and WeChat. Donors need to choose the donation amount and fill in the relevant information;
3. The donor completes the payment: the donor completes the payment operation according to the selected donation method and transfers the donation amount to the payee's account;
4. The payee confirms the receipt of the donation: after receiving the donation, the payee confirms the receipt in time and sends relevant information to the donor to confirm the receipt of the donation;
5. Recipients use donations: Recipients use donations according to the wishes of donors, for example, to support charity, education and medical care.
To sum up, when making donations, we must ensure that the sources of funds are legal and abide by relevant laws and regulations.
Legal basis:
Article 27 of the Enterprise Income Tax Law of People's Republic of China (PRC)
The following income of an enterprise may be exempted or reduced from enterprise income tax:
(1) Income from agriculture, forestry, animal husbandry and fishery projects;
(two) the investment and operating income of public infrastructure projects supported by the state;
(three) income from engaging in qualified environmental protection, energy saving and water saving projects;
(4) Income from qualified technology transfer;
(5) Income as stipulated in the third paragraph of Article 3 of this Law.