Q: What are the tax exemptions of the charitable donations and the charities.
A: Individual and business donors who are chargeable to salaries tax, personal assessment or profits tax can claim deduction for the aggregate of approved charitable donation up to 35% of the assessable income or profits, as the case may be, in the basis period of a year of assessment. Such aggregate must not be less than $100. (Sections 16D and 26C of the Inland Revenue Ordinance)
"Approved charitable donation" means a donation of money to any charitable institution or trust of a public character, which is exempt from tax under section 88 of the Inland Revenue Ordinance, or to the Government, for charitable purposes. (Section 2 of the Inland Revenue Ordinance)
Charitable institutions and trusts of a public character may be granted tax exemption under section 88 of the Inland Revenue Ordinance.