Donations made to the “Tai Po Wang Fuk Court Relief Fund” are considered recognized charitable donations made to the Government for charitable purposes. Subject to certain conditions, donors may claim a deduction for such donations in the relevant tax year. The total amount claimed as a deduction for recognized charitable donations must be at least HK$100 and must not exceed 35% of the donor’s income for that year, after deducting allowable expenses and depreciation allowances, or of the donor’s assessable profit.
To facilitate tax deductions for the public, the government has made special arrangements for donors who contribute to the “Tai Po Wang Fuk Court Relief Fund.”
For donations of HK$50,000 or less transferred to the “Tai Po Wang Fuk Court Relief Fund” account, donors may claim a tax deduction without requesting a donation receipt; provided that the donor retains relevant records of the donation—such as bank transfer receipts, deposit slips, ATM receipts, online transaction records, or bank statements—to prove that the donation was transferred directly from the donor’s account to the “Tai Po Wang Fuk Yuen Relief Fund” account. Donors must retain the relevant supporting documents for a period of 6 years (counting from the end of the relevant tax year) so that they can be submitted for inspection in the event of a future audit by the Inland Revenue Department. Member entities are subject to top-up tax. Otherwise, the top-up tax will be levied by another jurisdiction through the application of the income inclusion rule or the low-tax profit rule.