May 2008 - Earthquake victims in Sichuan

Donations for the earthquake victims in Sichuan - tax update

Although it has been more than a week since the devastating disaster in Sichuan, donations are still necessary to help the victims. When making donation, the following points deserve attention:

Corporate Enterprises’ Donation limit for deduction purpose

Under Article 9 of the <PRC Enterprise Income Tax Law> (“EITL”), an enterprise can claim charitable expenditure against taxable profit up to 12% of its annual accounting profit.