Charitable Donation Deduction Cap Calculator 2026 — Hong Kong

The Charitable Donation Deduction Cap Calculator is a free, browser-based tool that works out how much of your Hong Kong giving is actually deductible. It applies the IRD Section 88 rule capping approved charitable donations at 35% of assessable income, shows the wasted excess, and estimates the tax saved at your marginal rate. Updated 2026-09-07.

How the 35% Cap Works

IRD allows deduction of charitable donations up to 35% of assessable income (after deductions other than charitable). For HK$850,000 income, max deductible = HK$297,500. Donations above the cap are simply not deductible in current or future years — no carry-forward. Plan donations carefully: spreading large gifts across multiple years can maximize deduction usage.

Approved Charities Only

Only donations to IRD-approved Section 88 charities qualify. The list includes major charities (Po Leung Kuk, Tung Wah Group, Caritas, Oxfam HK, World Vision HK, etc.) and educational institutions. Always confirm IRD approval status BEFORE donating — check IRD's published Section 88 list. Foreign charity donations do NOT qualify for HK deduction, even if charity is tax-exempt in another jurisdiction.

What "Assessable Income" Means for the 35% Cap

The cap is not 35% of your gross salary, and getting the base wrong is the most common reason a self-calculated figure is rejected. The 35% is taken on income after allowable expenses and depreciation allowances but before the donation itself and before personal allowances. For a salaried taxpayer that usually means total income less allowable outgoings and any self-education expenses; for a business it means assessable profits after deductions and depreciation.

• Salaries Tax: 35% of income after allowable expenses, before personal and dependant allowances.
• Profits Tax: 35% of assessable profits after deductions and depreciation allowances.
• Personal Assessment: 35% of the aggregated total income, which can produce a larger cap than either regime alone when a couple has rental and salary income together.

Two consequences worth planning around. First, a HK$100 minimum applies to the year's aggregate donations, not per gift. Second, because there is no carry-forward, any donation above the cap is lost outright — so if a large gift would breach it, splitting the gift across two tax years, or allocating it to the spouse with unused headroom under joint assessment or personal assessment, preserves the relief that would otherwise be wasted. Run both spouses' figures separately in the calculator above before deciding who claims.

How to Check a Charity Is IRD-Approved Before You Donate

A donation only qualifies if the recipient is a charity or trust of a public character exempt from tax under Section 88 of the Inland Revenue Ordinance (Cap. 112). Approval is not implied by a charity being well known, being a registered company, or being tax-exempt abroad — a donation to a foreign charity does not qualify even if it does the same work.

The Inland Revenue Department publishes and updates the full list of approved bodies, searchable by name, at IRD — Tax-Exempt Charities. Check the name there before you give, not at filing time, because a receipt from an unapproved body cannot be fixed after the fact. Some Hong Kong branches of international charities are separately approved and appear on the list under their local entity name, so search the local name rather than the global brand.

Best Documentation Practices

Receipts must include: charity's name and Section 88 approval reference number, your name, donation amount and date, signature of charity officer. For non-cash donations (shares, property), valuation report required. Keep receipts for 7 years (statute of limitations for tax records). E-filed receipts acceptable. Claim deduction on BIR60 (Salaries Tax) or BIR51/BIR52 (Profits Tax).

Source: Inland Revenue Ordinance Cap. 112 Section 88, IRD Departmental Interpretation and Practice Notes No. 37. Last updated: 2026-09-07.