Firms must get approval and use qualified organisations for Mainland China donations to claim tax deductions.
The Taichung Branch of Taiwan’s National Taxation Bureau (Central Area) under the Ministry of Finance stated that, under Article 79 of the Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax, profit-seeking enterprises must obtain approval from the Mainland Affairs Council before making donations to Mainland China.
This announcement was made on 28 October 2025.
Such donations must be carried out through organisations or institutions that comply with Paragraph 4, Article 11 of the Income Tax Act, and proper receipts issued by these organisations must be obtained before the donations can be recognised as deductible expenses or losses for the year.
The Taichung Branch explained that, in light of recent floods in certain areas of Mainland China, enterprises intending to make donations should note that such donations must first be reviewed and approved by the Mainland Affairs Council in accordance with the Income Tax Act and related regulations.
Donations must be made through qualified organisations or institutions. Donations made without approval, or directly to Mainland entities, cannot be listed as deductible expenses or losses.
The National Taxation Bureau reminds profit-seeking enterprises that, when filing their income tax returns, any donations to Mainland China must comply with the relevant laws and regulations to avoid adjustments and supplementary tax payments.
