A draft of an amendment to China's Corporate Income Tax Law was submitted to the National People's Congress Standing Committee for deliberation on Feb. 22, China News reported. The amendment includes new content encouraging enterprises to make charitable donations.
The draft amendment, which would revise Article 9 of the existing Corporate Income Tax Law, reads as follows: "Public welfare donations totaling less than 12 percent of the annual profit of a corporation are allowed to be deducted when calculating taxable income; those exceeding 12 percent of the total annual profit shall be deducted within three years."
The NPC Financial and Economic Committee believes that the draft amendment would not only effectively connect related provisions in the corporate income tax law and charity law, but would also play a significant role in encouraging corporate charitable donations.
