According to the Charity Law of the People's Republic of China promulgated in March 2016, "If natural persons, legal persons and other organizations donate property for charitable activities, they shall enjoy preferential taxation according to law. Enterprise charitable donation expenditure exceeds the deduction allowed by law in calculating the taxable income of enterprise income tax in the current year. It is allowed to deduct the deduction in calculating the taxable income within three years after carrying over. The goods donated abroad for charitable activities shall be levied or exempted from import duties and value-added tax on import links according to law." For details, please refer to the Charity Law of the People's Republic of China.

According to the Enterprise Income Tax Law of the People's Republic of China promulgated on February 24, 2017 (revised in February 2017), Article 9 has been amended as follows: "The public welfare donation expenditure incurred by an enterprise shall be deducted when calculating the taxable income within 12% of the total annual profit; if the amount exceeds 12% of the total annual profit, the taxable income shall be calculated within three years after carrying-over." Deduct. " For details, please refer to the Enterprise Income Tax Law of the People's Republic of China.

According to the Circular on Corporate Income Tax Policy for Public Equity Donation issued on April 20, 2016, "First, the equity donation implemented by enterprises to public welfare social organizations shall be regarded as the transfer of equity according to the regulations, and the income from equity transfer shall be determined by the historical cost of the acquisition of the equity donated by enterprises. The term "equity" referred to in the preceding paragraph refers to the equity of other enterprises and the stocks of listed companies held by enterprises. 2. After an enterprise implements equity donation, it determines the amount of donation based on its historical cost of equity and deducts it before income tax in accordance with the relevant provisions of the Enterprise Income Tax Law. After accepting equity donation, public welfare social organizations shall issue donation bills according to the historical cost of equity provided by the donating enterprises. For more details, please refer to the Notice on the Income Tax Policy of Public Equity Donation Enterprises.

According to Article 24 of the Implementing Regulations of the Personal Income Tax Law of the People's Republic of China promulgated on July 19, 2011 (revised in July 2011), it is stipulated that "the portion of donation not exceeding 30% of taxable income declared by taxpayers may be deducted from its taxable income". For details, please refer to the Regulations of the People's Republic of China on the Implementation of the Personal Income Tax Law.

The Law of the People's Republic of China on Donation of Public Welfare Enterprises promulgated on June 28, 1999 stipulates that "companies and other enterprises shall donate property for public welfare in accordance with the provisions of this Law and enjoy preferential treatment in respect of enterprise income tax in accordance with the provisions of laws and administrative regulations." "Natural persons and individual industrial and commercial households shall donate property for public welfare in accordance with the provisions of this Law, and shall enjoy preferential treatment in respect of personal income tax in accordance with the provisions of laws and administrative regulations." "Material donated abroad to public welfare social organizations and public welfare non-profit institutions for public welfare undertakings shall be reduced or exempted from import tariffs and value-added tax on import links in accordance with the provisions of laws and administrative regulations." For more details, please refer to the Law of the People's Republic of China on Donation of Public Welfare Enterprises.

On April 27, 2018, Zhejiang Provincial Finance Department, Zhejiang Provincial State Tax Bureau, Zhejiang Provincial Local Tax Bureau and Zhejiang Provincial Civil Affairs Department jointly issued a bulletin announcing the list of public welfare social organizations eligible for pre-tax deduction of public welfare donations in Zhejiang Province in 2018, among which the West Lake Education Foundation is listed (No. 78). Details are as follows:

Zhejiang Provincial Finance Department Zhejiang State Taxation Bureau Zhejiang Provincial Local Taxation Bureau Zhejiang Provincial Civil Affairs Department

In accordance with the provisions of the Enterprise Income Tax Law of the People's Republic of China and the implementing regulations, as well as the Circular of the Ministry of Finance of the State Administration of Taxation of the Civil Affairs of the Ministry of the People's Republic of China on the Examination and Approval of Qualifications for Pre-tax Deduction of Public Benefits Donations (Finance and Tax [2015] No. 141), our province has optimized the pre-tax deduction qualification determination procedure for public welfare donations since 2018: According to the registration and public welfare activities of the associations in the previous year, the provincial civil affairs, provincial finance and taxation departments directly confirm the eligibility for pre-tax deduction of public welfare donations in 2018. The list of organizations that are eligible for pre-tax deduction of public welfare donations in 2018 is hereby announced as follows:

1. Anji Environmental Public Welfare Association

2. Anji County Charity Association

3. Anji County Entrepreneur Student Assistance Foundation

4. Cangnan High School Dream Education Development Foundation, Cangnan County

...

77. Charity Association of West Lake Scenic Spot in Hangzhou

78. Hangzhou West Lake Education Foundation

79. Hangzhou Xihu District Charity Association

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