Hong Kong Ordinances

INLAND REVENUE ORDINANCE - SECT 26C

Approved charitable donations (Part IVA)*

(Past version on 04/07/2003).
(Past version on 17/04/1998).

(1) Subject to the other provisions of this section, where a person or his or
her spouse, not being a spouse living apart from the person, makes any
approved charitable donations during any year of assessment, a deduction in
respect of the aggregate amount of the approved charitable  donations shall be
allowable to the person for that year of assessment, if in any case such
aggregate amount is not less than $100.

(2) (a) Subject to paragraph (b), where a person is chargeable to tax under
Part III, no deduction shall be allowable to the person under subsection (1)
for any year of assessment in respect of-

        (i)    any sum which is allowable as a deduction under Part IV;

        (ii)   any sum by which the aggregate amount of the approved 
               charitable donations within the meaning of subsection (1) is in
               excess of the percentage specified in subsection (2A) of-
               (Amended 24 of 2003 s. 6) (A) subject to sub-subparagraph (B),
               the assessable income of the person for that year of assessment
               as reduced by the deductions provided for under
               section 12(1)(a) and (b) for that year of assessment; or (B)
               where the person and his or her spouse have made an election
               under section 10(2) for that year of assessment, the aggregate
               of their assessable incomes for that year of assessment as
               reduced in each case by the deductions provided for under
               section 12(1)(a) and (b) for that year  of assessment.

   (b)  Where a person has made an election under section 41 in respect of any
        year of assessment, no deduction shall be allowable to the person
        under subsection (1) for that year of assessment in respect of-

        (i)    any sum which is allowable as a deduction under Part IV;

        (ii)   any sum which has been allowed as a deduction to his or her
               spouse against the total income of that spouse that is required
               to be aggregated with that of the person under section 42A(1);

        (iii)  any sum by which the aggregate amount of the approved 
               charitable donations within the meaning of subsection (1) is,
               when aggregated with any sum that is allowable as a deduction
               under section 16D for that year of assessment, in excess of the
               percentage specified in subsection (2A) of the total amount of-
               (Amended 24 of 2003 s. 6) (A) the total income of the person
               for that year of assessment; (B) any sum which is allowable as
               a deduction under section 16D for that year of assessment; and
               (C) any sum which is allowable as a deduction under section  12
               (1)(e) for that year of assessment.

(2A) The percentages specified for the purposes of subsection

(2)(a)(ii) and (b)(iii) shall be-

   (a)  for any year of assessment up to and including the year of  assessment
        commencing on 1 April 2002, 10%;

   (b)  for the year of assessment commencing on 1 April 2003 or any
        subsequent year of assessment up to and including the
        year of assessment commencing on 1 April 2007, 25%; (Replaced 21 of
        2008 s. 5)

   (c)  for any year of assessment commencing on or after 1 April 2008, 35%.
        (Added 21 of 2008 s. 5) (Added 24 of 2003 s. 6)

(3) (a) Subject to paragraph (b), the same approved  charitable donation shall
not be allowable as a deduction under this section in ascertaining the
net chargeable income or the total income of more than one person.

   (b)  Where a deduction of the same approved charitable donation is claimed
        or allowed in ascertaining the net chargeable income or the total
        income of more than one person, section 33(2) to (4) shall apply with
        the necessary modifications to such a deduction as it does to a
        dependent parent allowance, a dependent grandparent allowance, a
        dependent brother or dependent sister allowance, a child allowance or
        a disabled dependant allowance; and section 33 shall, where this
        paragraph applies, be construed as if a reference therein to such an
        allowance included, in the case of an approved charitable donation so
        claimed, a reference to an allowance to which section 33(2) applies
        and, in the case of an approved  charitable donation so allowed, a
        reference to an allowance to which section 33(3) applies. (Part IVA
        added 31 of 1998 s. 12)
        ___________________________________________________________________________
        __________ Note:

* (Amended 21 of 2008 s. 5)