In disaster areas, individuals who have caused heavy losses due to earthquake disasters may be exempted from personal income tax. At the same time, individual donations to earthquake-stricken areas are deducted from taxable income in accordance with the relevant provisions of the individual income tax law.
State Taxation Administration of The People's Republic of China issued a notice yesterday, clarifying the provisions on income tax deduction for donations from individuals and enterprises to disaster areas. The circular also clarified a series of tax reductions and exemptions for the reconstruction of disaster areas.
This Notice on Conscientiously Implementing Tax Policies for Earthquake Relief and Post-disaster Reconstruction clarifies that individuals who have suffered heavy losses due to earthquake disasters in disaster areas can be exempted from personal income tax. At the same time, individual donations to earthquake-stricken areas are deducted from taxable income in accordance with the relevant provisions of the individual income tax law.
According to the Individual Income Tax Law, the portion of an individual's donation that does not exceed 30% of his taxable income can be deducted from his taxable income.
At the same time, the notice clarified a series of tax issues after the disaster: the property losses caused by the earthquake disaster will be allowed to be deducted when calculating the taxable income. Public welfare donation expenses incurred by enterprises shall be deducted when calculating taxable income in accordance with the provisions of the enterprise income tax law and its implementing regulations.
According to the enterprise income tax law, the part of the public welfare donation expenditure incurred by an enterprise that does not exceed 12% of the total annual profit is allowed to be deducted.
After the earthquake, a lot of houses were damaged and collapsed. As for the tax on damaged houses and dangerous houses, State Taxation Administration of The People's Republic of China stipulates that these houses can be exempted from property tax after they stop using. For those who buy houses again, the deed tax is allowed to be reduced, and the specific measures for reduction and exemption are formulated by the provincial people's governments in the affected areas; For serious losses caused by earthquake disasters, if it is really difficult to pay, you can apply for regular relief of urban land use tax.
If taxpayers suffer heavy losses due to earthquake disasters in the process of mining or producing mineral products, the people's governments of provinces, autonomous regions and municipalities directly under the Central Government in the affected areas shall decide to reduce or exempt the resource tax.
At the same time, State Taxation Administration of The People's Republic of China stipulates that if the vehicle and vessel that has paid the vehicle and vessel tax are scrapped or lost due to the earthquake disaster, the owner can apply for a refund of the tax from the month of scrapping to the end of this year.
State Taxation Administration of The People's Republic of China is exempt from import tax on materials donated by foreign governments, non-governmental organizations, enterprises and individuals to disaster areas in China, including food, daily necessities, medicines and rescue tools.
The relevant person in charge of State Taxation Administration of The People's Republic of China said that while the tax system continues to do a good job in earthquake relief, it will actively support earthquake relief and post-disaster reconstruction in terms of tax policies and organizational income.