Charitable Donation Deduction Cap Calculator 2026 — Hong Kong
Hong Kong's Inland Revenue Department (IRD) allows tax deduction for approved charitable donations up to 35% of assessable income under Section 88 of the Inland Revenue Ordinance. Donations must be to IRD-approved charities (Section 88 list) and minimum HK$100 cumulatively per year. Salaries Tax payers, Profits Tax payers, and Personal Assessment electors all benefit.
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.
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: May 2026.