Research On The Deduction Tax Policy Of Non-monetary Charitable Donation In China

In recent years,China’s non-monetary assets donation has been stable at about 30% of the total social donations.Especially since the outbreak of the new epidemic,the donation of nonmonetary assets such as materials has increased rapidly,which has played an indispensable role in epidemic prevention and relief.However,the preferential tax policy for non-monetary assets donation in China’s tax law is not perfect.Therefore,this paper selects the enterprises as the largest donation subject in China as the research object,and specially studies the pre Tax Deduction Policy of non-monetary assets donation.Charity donation expenditure is not an expense in essence,and the deduction of charitable donation before income tax is also a kind of tax preference in essence.The legitimacy of pre tax deduction for charitable donations of non-monetary assets lies in that the essence of charity is altruistic and public welfare,and there are positive external effects.Therefore,we can not only rely on the market to promote the development of charity,but need the government to give support and encouragement to charity.Because of the crowding out effect of non tax expenditure on charitable donations,it is more reasonable to give preferential tax policies to charity.Therefore,the pre tax deduction of charitable donations of non-monetary assets is justified.At present,China’s charitable donation policy of non-monetary assets is still in the imperfect stage,there are some problems,such as limited eligible recipients,unreasonable determination of the value of non-monetary assets,and unclear regulations on different donation methods.In addition,this paper makes use of cases to analyze the problems in practice of the pre-tax deduction policy for charitable donations of non-monetary assets.Combined with the experience of the United States and the United Kingdom,this paper puts forward the following suggestions on the pre Tax Deduction Policy of non-monetary assets charitable donations in China: first,in the system of recipients,establish a "wide access,strict supervision" pre tax deduction qualification examination mechanism for charitable donations,and set up a special regulatory department for charitable organizations to improve the supervision efficiency.The second is to expand and refine the scope of charitable donation of non-monetary assets that are allowed to be deducted before tax,and clearly stipulate the assets by listing.The third is to expand and clarify the way of charitable donation,allowing non-monetary assets to be sold in the era of donation and selling non-monetary assets to charitable organizations at low prices.Fourth,refine the rules of value determination,such as whether the transportation expenses are included in the fair value in the process of donating non-monetary assets.Fifthly,it is necessary to encourage real estate,equity and other large donations...