Hong Kong Tax News Flash

June 2023, Issue 11

IRD enhances processing of applications for tax exemption status of charities

Charities play a vital role in contributing to the community. Over the years, the Government has provided support to charities through various policy measures such as granting tax exemption status to recognised charitable institutions and trusts as well as allowing tax deduction to donors for donations made to them.

As part of an initiative to develop Hong Kong into a philanthropic centre, the Inland Revenue Department (IRD) announced on 9 June 2023 the enhanced procedures on application for recognition of tax exemption status of charities. Applicants are now required to complete a new application form and provide the supporting documents specified therein. Meanwhile, the IRD has updated the Tax Guide for Charitable Institutions and Trusts of a Public Character (Tax Guide) to reflect the enhanced application procedures and provide further guidance to applicants on drafting their governing instruments.

This news flash provides an overview of the above changes and our observations thereon.