Saturday, December 7, 2013

Long & Hu: Tax Incentives for Charitable Donations of Non-Monetary Assets by Chinese Corporations

20130826115534893489Zhaohui Long (Sun Yat-Sen University) and Xiaoling Hu have posted Research on Tax Incentives for Charitable Donations of Non-Monetary Assetsby Chinese Corporations, 3 Journal of Chinese Tax and Policy 21 (2013).  Here is the abstract:

Corporate donations form a substantial part of social charitable donations in China. Corporate non-monetary asset donations are important in this regard as they bring goods and materials to areas where they are desperately needed. However, the current scope and scale of corporate donations are narrow due to a lack of tax incentives. This paper will explain the incentive effects of the current tax regime by analyzing how asset donations are treated by Chinese taxation laws, from the perspective of macroeconomic policies and market demands. It particularly focuses on the relatively heavy tax burden and limited scope for tax exemptions on corporate asset donations in China. In light of this, we propose some pragmatic suggestions on incentivizing policies that are more suitable for China’s current situation, such as increasing the exemptions before tax and allowing exemptions to roll over to future years, developing incentive policies on indirect and property taxes, and establishing the mechanism for third-party price evaluation and equity donation regulation, etc

Lloyd Mayer

http://lawprofessors.typepad.com/nonprofit/2013/12/long-hu-tax-incentives-for-charitable-donations-of-non-monetary-assets-by-chinese-corporations.html

International, Publications – Articles | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef019b024bc3a8970b

Listed below are links to weblogs that reference Long & Hu: Tax Incentives for Charitable Donations of Non-Monetary Assets by Chinese Corporations:

Comments

Post a comment