<aside> ℹ️ Under Section 88 of the Inland Revenue Ordinance (Cap 112) (the IRO), a registered charity in Hong Kong is exempt from profits tax subject to certain conditions. Find out how to acquire the tax exemption status in this guide.

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• Table of Contents

What is a Charity?

Charity must be established for charitable purposes and for public benefits.

As per the law, charitable purposes are classified into four categories:

• the relief of poverty
• the advancement of education
• the advancement of religion
• other purposes of a charitable nature beneficial to the community but not falling under any of the preceding heads.

Tax Exemption Requirements

1. The profits are applied solely for charitable purposes

2. The profits are not expended substantially outside Hong Kong

3. (i) the trade or business is exercised in the course of actual carrying out of the expressed object of the charity (e.g. A charity for religion sells relevant books); or

   (ii) the work in connection with the trade or business is mainly carried on by persons for whose benefit such charity is established. (e.g. A charity for orphans may hold an exhibition of their drawings.)
   

Apply for Tax Exemption

Required documents for established charities

• A letter requesting for the recognition of the tax exemption status
• A copy of the relevant certificate of registration
• A certified true copy of the instrument and rules governing its activities
  • A limited company - the Articles of Association
  • A trust - the trust deed,
  • A society - the constitution
• A list of any activities which have been carried out in the past 12 months and are planned within 12 months ahead.