The Study On Incentive Tax Policies Of Charitable Donation

In February 2018,40 departments and units such as the National Development and Reform Commission and the People's Bank of China jointly signed the Memorandum of Cooperation on Jointly Punishing Encouraging and Untrustworthy Deeds in the Field of Charitable Donations,which stipulates 26 incentive measures and 24 punitive measures to utilize the sharing of information to motivate charitable organizations and donors with good donation records from livelihood,economy,taxation,customs,industry and commerce,etc..The punished memorandum means that the charity donation field is formally included in the scope of social credit management.From the promulgation of the"Charity Law"in 2016 to the signing of the"Memorandum"in 2018,we have witnessed that the charitable territory of China is gradually changing in recent years.It not only formulate comprehensive norms of charity into law,which promote the rapid development of charity and establish the basic legal framework,but also connect the charity and social credit system,charity infiltrated into all aspects of social life to promote China in encouraging donations to achieve the rapid development of poverty reduction achieved.Although the current environment for the development of charitable organizations in China is gradually improving,there is still a big gap between China and the world on tax incentives for charities.According to the 2016 World Donation Index,China ranks 138th in the world.The development of China's future philanthropy still needs to rely on the development of charitable organizations.Therefore,it is urgent for China to cultivate a good culture of charity to promote the qualitative leap in charity.Foreign experience shows that the tax incentives policies play a key role in development of charities.Using the tax incentives policies,social resources and non-governmental forces can be mobilized to participate in philanthropy so as to encourage the individuals and enterprises to make positive donations,which will stimulate social development charity awareness and culminate a good culture of charity.However,compared with the charity tax policy in developed countries,on the reason of the imperfect charity tax system in our country and the potential charity power of the middle class needed to be developed,the charity tax preference in our country is not strong.Therefore,this article will analyze the provincial average per capital tax revenue and the provincial average per capital donation charitable donations to analyze the incentive effect of charitable tax policy.In addition,based on the experience of the United States,the writer will study the tax incentives policies of individuals and the enterprise respectively,putting forward the policy of levying inheritance tax and exempting value-added tax on in-kind donations,hoping that this will help the rapid cultivation of China's charity culture and the rapid development of charity.