11. I made donations to a charity. Can I claim deductions?

11. I made donations to a charity.  Can I claim deductions?

A taxpayer may deduct money given to the government for charitable purposes or to any charity that is exempt from tax under section 88 of the Inland Revenue Ordinance. To determine if the charity in question is a tax-exempt charity as defined under section 88, you can refer to the Inland Revenue Department's website. The minimum amount allowable for deduction is $100.

A taxpayer may also deduct any authorized charitable contributions made but not deducted by his or her spouse. Each year, you may only deduct up to 35% of your assessable income, less any deductions for outgoings, expenses, and depreciation allowances, or assessable profits. 

Not every donation made to tax-exempt organizations is deductible. Payments for lottery or raffle tickets, admittance to movies or charity events, the purchase of products at bazaars, and other forms of payment are examples of payments that are not recognized as permissible donations. 

It is advisable that you request receipts from the recipients and keep them on file for 6 years after the assessment year in which the donations were made has ended. You don't need to provide any supporting papers when submitting your Individual Tax Return. If your case is chosen for evaluation, you may be required to provide receipts for review.