1. According to “Enterprise Income Tax Law of the People's Republic of China” issued by the NPC in March 2007, which clarifies that: On Jan.1, 2008,on condition that the donation of enterprise is given through public welfare organizations or government above county level including its departments, the portion of the donation that is within 12% of the enterprise’s total annual profit can be deducted from taxable income”.
2. According to “Regulations for the implementation of the Individual Income Tax Law of People’s Republic of China” issued by the State Council in February. 2008, which clarifies that: on condition that the donation of individual is given to education and other public welfare through China's social organizations and government agencies, with respect to the charitable donations incurred by individuals, the portion of the donation that is within 30% of the individual’s total annual income is eligible to be deducted from the taxable income”.