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Approved Charitable Donations

Approved Charitable Donations

In Hong Kong, an "approved charitable donation" is a donation of money made to a qualified charity that can be deducted from your taxable income for tax purposes. Here's what you need to know about approved charitable donations in Hong Kong:

Eligibility for Deduction:

  • You can claim a deduction for a donation of money to any charity that is exempted from tax under section 88 of the Inland Revenue Ordinance (IRO) or to the Government for charitable purposes. You can find a list of these charities on the Inland Revenue Department (IRD) website.

  • The donation must be at least HK$100.

  • The total amount of approved charitable donations you can claim cannot exceed 35% of your assessable income after allowable expenses and depreciation allowances or assessable profits.

  • You can also claim a deduction for any approved charitable donation made but not claimed by your spouse.

How to Claim the Deduction:

  • You can claim the deduction by completing Part 4.3 of your tax return for the relevant year of assessment.

  • You will need to attach a receipt or other evidence of the donation to your tax return.

Additional Information:

  • The IRD has published a FAQ on Approved Charitable Donations that you may find helpful.

  • You can also find more information on the IRD website about Charitable Donations and Tax-Exempt Charities.

Here are some additional things to keep in mind:

  • Not all donations are eligible for tax deduction. For example, donations of goods or services, payments for raffle tickets, and admission tickets for charity shows are not eligible.

  • You should keep all receipts and other documentation related to your donations for at least seven years.

  • If you are unsure whether a donation is eligible for tax deduction, you should consult with a tax advisor.

How Bestar can Help

Some general information on how Bestar can help with approved charitable donations in Hong Kong:

Services Bestar offers:

  • Verifying the eligibility of the charity: Bestar can ensure the charity you donate to is on the list of tax-exempt charities under Section 88 of the Inland Revenue Ordinance (IRO).

  • Calculating the allowable deduction: We can calculate the maximum amount you can deduct based on your income and the donation amount, ensuring you claim the correct amount and maximize your tax benefit.

  • Preparing and filing your tax return: We can handle the entire process of preparing and filing your tax return, including the section related to charitable donations.

  • Keeping accurate records: We can help you maintain proper documentation, such as receipts and donation confirmations, for future reference.

  • Advising on tax implications of different donation methods: We can explain the tax implications of different donation methods, such as cash, stocks, or recurring donations.

  • Staying up-to-date on tax rules: We can keep you informed about any changes in tax regulations related to charitable donations.

If your tax situation is complex, involving multiple income sources or deductions, professional assistance might be beneficial.

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