There are two types of taxes generally applicable to philanthropic activities in China: income tax and indirect taxes.

Under the Chinese laws, NPOs must pay an Enterprise Income Tax. However, donations, state subsidies, and some other forms of income are, by practice, tax exempt. Contributions to NPOs are deductible from income tax, with limits depending on the type of taxpayer, the type of beneficiary, and the use of the contribution.

Certain types of NPOs – those that engage in nursing, medical, educational, cultural, or religious activities, or activities in which services are performed by the disabled – are exempt from the Business Tax, which is a tax on sales of services.

While the government subjects most goods and services to VAT and imposes customs duties on imports, exemptions are given. Examples are goods donated by international organizations as well as those donated by persons outside China to specified national-level Social Organizations. 

Read more: China Daily - "Tax policy on charity widened" [1]