Page 16 - SCBJ-201703
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South China Business Journal
CHINA BRIEFING 2016 saw China pass two new laws The Charity Law has a specific list of Article 5 of the NGO Law is perhaps its
that will play a major role in shaping activities that qualify as being charitable, most arbitrary, broadly stating that foreign
its civil society sector. The Charity Law, carried out by either providing services or NGOs must not “endanger China’s national
already in effect, and the Overseas Non- donating property. The law emphasizes that unity, security, or ethnic unity; and must
Government Organization (NGO) Law, any organization carrying out charitable not harm China’s national interests,
set for implementation in January, are activities must abide by principles of societal public interest and the lawful rights
closely intertwined, but while the former being “lawful, voluntary, in good faith, and interests of citizens, legal persons
has been largely praised for incentivizing and non-profit”, and cannot “violate social and other organizations.” The vagueness
and making simpler charitable donations morality, or endanger national security or of the language used, combined with the
and funding, the latter has been widely harm public interest or the lawful rights law shifting who NGOs are reviewed by
condemned for restricting which charities and interests of others.” A definition of the from the Ministry of Civil Affairs to the
can accept these donations and successfully latter terms, however, is not provided. Public Security Bureau - widely seen as an
operate in the Middle Kingdom. attempt to further crack down on activism
The Overseas NGO Law - is likely to have the biggest impact on
Defining NGOs and Charities Article 2 of the Overseas NGO Law refers their operations in China.
in China to foreign NGOs as “not-for-profit, non-
governmental social organizations lawfully Tax Incentives Available to Charities
The Charity Law established outside mainland China, such
Foreign and domestic charities are defined as foundations, social groups, and think Incentives for Companies
differently in China, with the new Charity tank institutions.” Article 10 of the law Making Donations
and Overseas NGO Laws detailing what further clarifies that foreign organizations Businesses - including foreign businesses
activities they must each respectively must have existed for two years prior to - that provide charitable donations to
undertake and what they are unable to do. entering China. domestic charities are able to obtain tax
Photo from google.com
Funding China’s Civil Society
– Tax Incentives, Donation Law
and the Role of Foreign Charities
14
CHINA BRIEFING 2016 saw China pass two new laws The Charity Law has a specific list of Article 5 of the NGO Law is perhaps its
that will play a major role in shaping activities that qualify as being charitable, most arbitrary, broadly stating that foreign
its civil society sector. The Charity Law, carried out by either providing services or NGOs must not “endanger China’s national
already in effect, and the Overseas Non- donating property. The law emphasizes that unity, security, or ethnic unity; and must
Government Organization (NGO) Law, any organization carrying out charitable not harm China’s national interests,
set for implementation in January, are activities must abide by principles of societal public interest and the lawful rights
closely intertwined, but while the former being “lawful, voluntary, in good faith, and interests of citizens, legal persons
has been largely praised for incentivizing and non-profit”, and cannot “violate social and other organizations.” The vagueness
and making simpler charitable donations morality, or endanger national security or of the language used, combined with the
and funding, the latter has been widely harm public interest or the lawful rights law shifting who NGOs are reviewed by
condemned for restricting which charities and interests of others.” A definition of the from the Ministry of Civil Affairs to the
can accept these donations and successfully latter terms, however, is not provided. Public Security Bureau - widely seen as an
operate in the Middle Kingdom. attempt to further crack down on activism
The Overseas NGO Law - is likely to have the biggest impact on
Defining NGOs and Charities Article 2 of the Overseas NGO Law refers their operations in China.
in China to foreign NGOs as “not-for-profit, non-
governmental social organizations lawfully Tax Incentives Available to Charities
The Charity Law established outside mainland China, such
Foreign and domestic charities are defined as foundations, social groups, and think Incentives for Companies
differently in China, with the new Charity tank institutions.” Article 10 of the law Making Donations
and Overseas NGO Laws detailing what further clarifies that foreign organizations Businesses - including foreign businesses
activities they must each respectively must have existed for two years prior to - that provide charitable donations to
undertake and what they are unable to do. entering China. domestic charities are able to obtain tax
Photo from google.com
Funding China’s Civil Society
– Tax Incentives, Donation Law
and the Role of Foreign Charities
14
