inHong Kong corporate auditIn order to fulfill their social responsibilities, enterprises may donate to the society to support social construction. Is this donation deductible for profits tax purposes?

The Inland Revenue Department of Hong Kong stipulates that donations made to approved charities or charitable trusts of a public character or to the Government of the Hong Kong Special Administrative Region for charitable purposes are deductible. Provided that the sum of the contributions should not be less thanHKD100And not exceeding the assessable profit after adjustment but before deduction of contributions35%.

For exampleAHong Kong company2020Donate through recognized charities in Hong Kong in 2005HKD50000,This yearAThe company's profit isHKD200000How much is deductible for the donation?

AThe company's assessable profit excluding this donation=200000-50000=150000, the maximum amount of donations that can be deducted before tax is:150000*35%=52500, then donated that yearHKD50000All deductions can be made.

ifAThe company's profit for the year wasHKD100000,How much is deductible for this donation?

AThe company's assessable profit excluding this donation=100000-50000=50000, the maximum donation deductible before tax is:50000*35%=17500, then the deductible donation for the current year is17500.

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