Research On Our Country’s Charity Donation Tax Policy

Philanthropy in our country has been developing rapidly in recent years. Especiallyafter such vital natural catastrophes as the southern snow disaster, Wenchuanearthquake, and Yushu earthquake, China’s charitable donation has reached its peak.Due to its late start, China’s philanthropy is inevitably confronting the problems ofsomewhat inferior overall level, administrative intervention, inadequate charitableconsciousness, insufficient participation, and slow development of the charitableorganizations, etc. Meanwhile, the rapid development of philanthropy is highlightingthe lagging of China’s charitable legislation, as reflected in the lack of uniformlegislation in charity field, the fragmentation of charity-related laws and regulations,and the imperfection of tax policies to encourage charitable donation, which isprominently constraining the stride development of China’s philanthropy.Hereinafter the tax issue is the entry point to promote the development of China’sphilanthropy. On one hand, from an economic perspective, tax policies’ incentiveeffects on charitable donation are distinct. On the other hand, from a macro policyperspective, the new Enterprise Income Tax Law implemented in2008considerablyadjusted the tax policies on public welfare donation. In such context, there is a need tofind out the causes of the problems existing in China’s charitable donation, especiallyto find out the defects and drawbacks in the taxation arrangements, concrete policies,collective and administrative operations of the tax policies on the public welfaredonation, and to propose targeted suggestions to perfect China’s tax policies oncharitable donation by comparing with the taxation arrangements for donation of thewestern countries. Consequently, the donation of donors’ can be encouraged, and thedevelopment of charitable donation can be promoted.This thesis is to launch describing in three layers:The first layer is the basis of this research, including Chapter1and2. Chapter1setsforth the background and significance of the proposed research, outlines domestic andoverseas research status, specifies the scope and purpose of the research, and putsforward research methods and basic structure. Chapter2expounds the stimulation tocharitable donation of tax policies by theoretical analyses of correlation of the twoparties, and thus provide theoretical basis for inspiring charitable donation.The second layer is the analyses of taxation policies related to charitable donation,including Chapter3and4. Chapter3analyzes the status of development of China’sphilanthropy and then finds out the problems in the development of China’sphilanthropy, focusing on reviewing China’s taxation policies relevant to charitabledonation and finding out the substantial causes of impeding of the growth ofcharitable donation by taxation policies. Chapter4analyzes the taxation policiesrelevant to charitable donation in the United States, England, Canada, Japan, and the drawbacks in China’s policies, and then indicates some of the foreign policies whichaccords with China’s economic development and are referable.The third layer is the suggestions about the perfecting of taxation policies oncharitable donation, including Chapter5and6. Chapter5focuses on the perfecting ofincome tax deduction policy, including expanding the scope of enjoying the pre-taxdeduction of donations, optimization of pre-tax deduction method, perfecting thein-kind donations policy, quickening the reform of personal income tax, perfectingcharity donation related policies, quickening our country’s legislative process,perfecting the incentives of circulation tax and property tax, and imposing ofinheritance tax. Chapter6is a summary, which puts forward and proves theconclusion. Ultimately, the purpose of the research of this proposition has beenachieved.