Charities in Hong Kong: Section 88 Tax Exemption Status and Related Matters
If your charitable organization holds tax exemption status under Section 88 of the Inland Revenue Ordinance, it is important to be aware of the ongoing compliance requirements that must be fulfilled to maintain that status. In addition, a charity’s Section 88 status does not guarantee that all of its income will be tax-exempt, so it is important to understand the specific conditions for tax exemption before embarking on revenue-generating activities.
With the contribution from Ernst & Young (EY), PILnet has created a practical guide on these topics, covering the ongoing compliance requirements for Section 88 organizations (e.g. notification and reporting obligations owed to the Inland Revenue Department), the conditions for income to be tax-exempt, and practical tips for charitable organizations.
