Three departments including the Ministry of Finance ("MOF") recently issued the Announcement on Matters concerning the Pre-tax Deduction of Public Welfare Donations (the "Announcement"), retrospectively effective from January 1, 2020. 

According to the Announcement, expenditures on donations for the cause of public charity that meet the legal requirements, made by enterprises or individuals through public-interest social organizations or state organs including people's governments above the county level and their departments, are deductible from the taxable income in accordance with the provisions of the applicable tax law. Meanwhile, the Announcement states that to be qualified for pre-tax deduction of public welfare donations, charities and other social organizations, legally registered with the authorities of civil affairs, shall also fulfill eight requirements, including "meeting the conditions stated in Subparagraph 1 through Subparagraph 8 of Article 52 of the Implementing Regulations of the Enterprise Income Tax Law". The qualification for pre-tax deduction of public welfare donations will be effective nationwide and valid for three years. Furthermore, the Announcement provides clarifications on specific circumstances in which a public-interest social organization will be disqualified from pre-tax deduction of public welfare donations and in which such social organization will be disqualified from pre-tax deduction of public welfare donations and banned from regaining the qualification.

(Source: http://szs.mof.gov.cn)