August 2018
Donations to administrative institutions by individuals or profit-seeking enterprises may be included, without any limitation on the amount, as donations for itemized deduction from their consolidated personal income taxes of such individuals or as annual expenses or losses of the profit-seeking enterprises for the year (Taiwan)
2018.6.20
Ariel Lin
The Ministry of Finance issued the Tai-Cai-Shui-10700556910 Circular of June 20, 2018 (hereinafter, the "Circular"), pointing out that donations of individuals or profit-seeking individuals to central or local administrative institutions set up pursuant to the Administrative Institution Law may include the donations, without any limitation on the amount, as donations for itemized deduction from their consolidated personal income taxes or as expenses or losses of the profit-seeking enterprises for the year by following the requirements under the proviso of Article 17, Paragraph 1, Subparagraph 2:(2)-1 or Article 36, Subparagraph 1 of the Income Tax Law.
According to a newsletter from the Ministry of Finance, the legislative objective of allowing the entire donations of individuals or profit-seeking enterprises to "governments" to be included as donations for itemized deduction or as expenses or losses for the year is that the direct donations to all levels of government agency can make up inadequate government budgets and fulfill government functions so as to further the overall public interest of society. Central or local administrative institutions set up pursuant to the Administrative Institution Law are established to carry out specific public duties for central or local governments and are supervised by central or local governments to ensure the performance of such public duties. Donations of individuals or profit-seeking enterprises to central or local administrative institutions to supplement the financial resources for carrying out public duties have the same effect as donations to governments, which are therefore consistent with the legislative objective of the Income Tax Law to encourage financial injection into government agencies to fulfill their functions As a result, donations of individuals or profit-seeking enterprises to central or local administrative institutions set up pursuant to law or local autonomous regulations may be included, without limitation on the amount, as donations for itemized deduction from their consolidated personal income taxes or as expenses or losses for the year by applying the proviso of Article 17, Paragraph 1, Subparagraph 2:(2)-1 or Article 36, Subparagraph 1 of the Income Tax Law.
Ariel Lin
The Ministry of Finance issued the Tai-Cai-Shui-10700556910 Circular of June 20, 2018 (hereinafter, the "Circular"), pointing out that donations of individuals or profit-seeking individuals to central or local administrative institutions set up pursuant to the Administrative Institution Law may include the donations, without any limitation on the amount, as donations for itemized deduction from their consolidated personal income taxes or as expenses or losses of the profit-seeking enterprises for the year by following the requirements under the proviso of Article 17, Paragraph 1, Subparagraph 2:(2)-1 or Article 36, Subparagraph 1 of the Income Tax Law.
According to a newsletter from the Ministry of Finance, the legislative objective of allowing the entire donations of individuals or profit-seeking enterprises to "governments" to be included as donations for itemized deduction or as expenses or losses for the year is that the direct donations to all levels of government agency can make up inadequate government budgets and fulfill government functions so as to further the overall public interest of society. Central or local administrative institutions set up pursuant to the Administrative Institution Law are established to carry out specific public duties for central or local governments and are supervised by central or local governments to ensure the performance of such public duties. Donations of individuals or profit-seeking enterprises to central or local administrative institutions to supplement the financial resources for carrying out public duties have the same effect as donations to governments, which are therefore consistent with the legislative objective of the Income Tax Law to encourage financial injection into government agencies to fulfill their functions As a result, donations of individuals or profit-seeking enterprises to central or local administrative institutions set up pursuant to law or local autonomous regulations may be included, without limitation on the amount, as donations for itemized deduction from their consolidated personal income taxes or as expenses or losses for the year by applying the proviso of Article 17, Paragraph 1, Subparagraph 2:(2)-1 or Article 36, Subparagraph 1 of the Income Tax Law.
