Expenditure on charitable donations used to cope with the COVID-19 epidemic shall be deducted in full when calculating the taxable income.
Public welfare donation expenditure in response to the COVID-19 epidemic. The Announcement of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Supporting the Prevention and Treatment of Pneumonia in novel coronavirus (Announcement No.9 of State Taxation Administration of The People's Republic of China of the Ministry of Finance, 2020) stipulates that cash and articles donated by enterprises through public welfare social organizations or state organs such as people's governments at or above the county level and their departments are allowed to be deducted in full when calculating taxable income; Enterprises directly donate items to hospitals undertaking epidemic prevention and control tasks to deal with the novel coronavirus epidemic, allowing full deduction when calculating taxable income.