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Minister of Civil Affairs Li Xueju revealed at a symposium with the National People's Congress and members of the National Committee of the Chinese People's Political Consultative Conference on the development of charitable causes that the “China Charity Convention†will be held in November this year. The conference will issue a “comprehensive implementation†jointly formulated by the Ministry of Civil Affairs and related departments. "Implementation of tax policy advice."
According to relevant officials of the Department of Disaster Prevention and Relief of the Ministry of Civil Affairs, at present, China has introduced some tax incentives to encourage charitable donations. For example, the tax law stipulates that if the amount of donations from domestic-funded enterprises and individuals to charitable and charitable organizations is within 3% and 30% of the taxable income respectively, this part of the donation can be deducted from income tax. If the donation exceeds the above proportion, the excess part still needs to pay income tax.
However, Li Xueju said that the proportion of these tax incentives for corporate and individual contributions is still low. For enterprises, this not only does not bring about a lot of tax deductions. On the contrary, companies have to pay corresponding taxes on donations outside the limit, which affects the enthusiasm of corporate donations. In some developed countries, the proportion of tax deductions for corporate and individual donations has reached more than 50%.
According to a survey by a charity organization, at present, there are more than 10 million registered domestic companies in China, and there are no more than 100,000 donation records, that is, 99% of companies have never participated in donations.
Ministry of Civil Affairs authoritative sources recently disclosed that China will further implement the tax incentives for encouraging charitable donations to protect the legitimate rights of donors and mobilize the enthusiasm of donations from all walks of life.