⚠ Only Donations to IRD-Approved s.88 Charities Qualify
Not all charities qualify for the Hong Kong tax deduction. Only organisations approved under s.88 of the IRO appear on the IRD's approved charity list. Donations to overseas charities, unregistered organisations, or entities without s.88 status — regardless of how worthy — do not qualify for the deduction. Always verify s.88 status before donating with tax savings in mind.
Common Challenges
Verifying Charity Eligibility
Donors often assume major charities are automatically approved. Many prominent overseas and religious organisations operating in HK do not hold s.88 status.
⚠ Risk: Claiming deduction for non-s.88 charity → IRD disallowance + possible penalty
Record-Keeping Requirements
The IRD requires receipts or acknowledgment letters from the charity for all claimed donations. Verbal confirmation or bank transfer screenshots alone are insufficient.
⚠ Risk: No receipt → IRD disallows the deduction on audit
35% Income Cap Optimisation
Donations above 35% of assessable income are not deductible in the current year and cannot be carried forward. Strategic timing of large donations across tax years maximises the deduction.
⚠ Risk: Donating too much in one year → portion permanently lost
Corporate vs Personal Giving
Deciding whether to donate personally or through a company affects the effective tax saving. At higher personal incomes, personal donations can save more than corporate donations.
⚠ Risk: Donating through the wrong vehicle → lower tax benefit
Who Is This For?
High-income individuals with significant charitable giving
Those donating HKD 50,000+ annually who want to ensure maximum tax efficiency.
Corporate executives with personal philanthropic programmes
Executives making large donations to universities, hospitals, or arts organisations.
People who donate to multiple organisations
Those giving to several charities who need to verify s.88 status and organise receipts.
Those establishing donor-advised funds or foundations
Individuals setting up structured giving vehicles and wanting to understand tax implications.
Employers making charitable donations through payroll giving
Those using payroll giving schemes and needing to understand employee vs employer deduction rules.
What We Do
Charity Eligibility Verification
We verify the s.88 approval status of all charities you donate to before you claim the deduction.
Cross-checked against IRD's approved charity register
Donation Deduction Optimisation
We calculate your 35% income cap and model the optimal distribution of large donations across tax years.
Including timing of pledges vs actual payments
BIR60 Charitable Deduction Claim
We prepare your annual return with all qualifying donations correctly claimed and documented.
With receipts and charity acknowledgement letters attached
Personal vs Corporate Giving Analysis
We model whether personal or corporate charitable donations produce a greater effective tax saving in your situation.
Comparing personal standard rate vs corporate profits tax rate
Charitable Trust & Foundation Advice
We advise on establishing a HK charitable trust or company limited by guarantee to structure your philanthropy tax-efficiently.
Including s.88 application for new charitable entities
How It Works
Donation Record Review
1 dayWe review all your charitable contributions and verify the s.88 status of each recipient.
Deduction Cap Analysis
1 dayWe calculate your 35% cap and identify any donations that should be deferred to the next tax year.
Receipt Compilation & Documentation
1–2 daysWe compile all charity receipts and acknowledgement letters required for the IRD claim.
Annual Return Filing
1–2 daysWe file your BIR60 or BIR52 with all qualifying donations correctly declared.
Case Studies
Senior executive with major charitable programme
- •Annual salary HKD 2,500,000
- •Charitable donations HKD 875,000 (35% of assessable income)
- •All donations verified as s.88 approved
- •Deduction at 15% standard rate → HKD 131,250 tax saved
- •Remaining HKD 375,000 deferred to next year via pledge timing
“TAX.hk structured my giving across two tax years to maximise the 35% cap in both years.”
Professional couple — joint charitable giving optimisation
- •Combined household giving HKD 360,000
- •Allocated to higher-earning spouse's return (standard rate taxpayer)
- •Both verified as s.88 charities
- •All receipts obtained and filed with return
“Allocating the donations to the right spouse's return made a significant difference to our combined tax saving.”
Frequently Asked Questions
How much can I deduct for charitable donations?
You can deduct qualifying charitable donations up to 35% of your assessable income (after other deductions but before personal allowances). The minimum qualifying donation is HKD 100 per charity. Donations above the 35% cap cannot be carried forward to future years — so timing large donations across years is important for maximising the benefit.
How do I know if a charity is IRD-approved?
The IRD maintains a searchable list of organisations approved under s.88 of the IRO on its website. You can search by charity name or registration number. Before claiming any deduction, verify your charity appears on this list. Alternatively, ask the charity directly for their IRD exemption reference number.
I donated to a UK cancer charity. Can I claim this?
No. Only donations to charities approved under s.88 of the HK Inland Revenue Ordinance qualify. UK, US, or other overseas charities — regardless of how reputable — do not qualify for the HK deduction unless they have a HK-registered subsidiary or branch that holds its own s.88 approval.
I donate HKD 5,000/month to my church. Is this deductible?
Only if your church holds s.88 approval from the IRD. Many religious organisations in HK have obtained s.88 status; others have not. You need to verify your specific church's status on the IRD approved charity list. Church pew contributions or collections without an official receipt also do not qualify — a proper receipt from the organisation is required.
Is it better to donate personally or through my company?
For higher earners paying salaries tax at the standard rate of 15%, a personal donation saves 15 cents per dollar donated. Corporate donations are deductible from profits tax at 16.5% (standard rate). The benefit is similar, but personal donations can interact with your overall tax position more favourably if you are within progressive rate bands below 15%. We model this for you.
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