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Q:
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What is the IIT deduction order if an individual has public charitable donation qualifies deduction from taxable income up to 30% taxable income, as well as, full amount deductable donation?
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A:
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According to a relevant Notice, an amount equivalent to the donation shall be deducted from IIT calculation if it qualifies the definition of full amount deduction. However, if, a donation with 30% deductable from taxable income is made at the same time, the individuals shall decide the deducting order freely.
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Q:
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What kind of donation vouchers must be obtained to have IIT deduction?
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A:
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According to a relevant Notice, public charitable donation invoices should be given when public welfare organisation, or state authorities accept donation from individuals. Donation invoices should be provided when requested by individuals.
For individuals whom did not receive invoices on time, a bank receipt is acceptable. The individual shall provide a copy of bank receipts to the IIT withholding party. Invoices should be provided within 90 days from the donation date. The withholding party shall report to competent tax authority within 30 days if did not receive any invoices.
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Q:
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Is IIT deductable from taxable income if a collective public charitable donation is made by a group of employees, which the invoice has only the name of company instead of employees.
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A:
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According to a relevant Notice, employees of authorities, public sector organisations, and entities can have the invoice of collective donation and a name list as voucher for IIT deduction.
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Q:
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What document should be given when companies withholding and prepaying IIT for employees who made donation?
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A:
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According to a relevant Notice, when individual benefits IIT deduction through withholding agents, they must notify the amount, provide invoices. A proof of original obtaining value must also be given if donation involves stocks and properties. The withholding agent shall then make IIT calculation with donation deduction and notify the individuals about the amount deducted.
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Q:
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What document should be handed in when individuals or withholding agents claim donation deductions?
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According to a relevant Notice, individuals and withholding agents shall file an Individual Income Tax Deduction by Public Charitable Donation Form.
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FAQ
