Tax Deduction for Charitable Donations in Hong Kong

Donations qualified for tax-exempt charities or charitable purposes can be deducted. You can have options to claim from your net assessable income under salaries tax, assessable profits under profits tax and total income under personal assessment. Here you can get some brief idea about these deductions.

Eligibility for Deduction

You may claim a deduction for a donation of money to any approved charity under section 88 of the Inland Revenue Ordinance or to the Government for charitable purposes. You can also claim a deduction for any approved charitable donation made but not claimed by your spouse.

Amount of Tax Allowance

The whole deduction of approved charitable donations cannot be less than $100. The aggregate deduction shall not exceed 35% of your income after allowable expenses and depreciation allowances or assessable profits. If you have more than one source of income and you have elected for personal assessment, the unused portion of approved charitable donations under a tax type (such as profits tax) may be deductible under personal assessment. Last but the least, it must be a voluntary donation and in monetary term.

Donations Not Accepted as Tax Deductions

Not all payments to tax-exempt charities are deductible.  The following are not the examples of payments allowable donations:

  • Payments for lottery or raffle tickets;  admission to film shows or charity shows; grave spaces
  • Payments made for services such as saying prayers or the reservation of a space for ancestral worship
  • Purchase of goods in bazaars
  • Payments made to a church, a tax-exempt charity, through dropping cash in the donation bag without donation receipt.

Lodging a Claim for a Deduction

To lodge a claim, you should enter the total amount of approved charitable donations made during the relevant year of assessment in your Tax Return – Individuals (BIR60). This donation can be claim once.

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