HK Non-Profit Organization (NPO): A dedicated and socially-driven entity in Hong Kong, working towards the betterment of society and addressing pressing community needs.
Mission: Committed to making a positive impact by addressing social, cultural, environmental, or humanitarian issues to enhance the well-being of individuals and communities.
Non-Profit Status: Operates on a non-profit basis, meaning that any surplus or income generated is reinvested in their mission rather than distributed as profit.
Volunteer-Driven: Relies heavily on the support and dedication of volunteers who selflessly contribute their time, skills, and resources to the organization's activities.
Diverse Areas of Focus: Engages in a wide range of fields, including education, healthcare, poverty alleviation, environmental conservation, arts and culture, and much more.
Eligibility to apply for tax exemption under Section 88
Non-Profit Nature: The organization must be established and operated exclusively for charitable purposes, meaning it exists to provide public benefit rather than private gain.
Charitable Objectives: The organization's activities should fall within one or more categories of charitable purposes recognized by the Hong Kong Inland Revenue Department (IRD). These purposes include the relief of poverty, advancement of education, promotion of health, and more.
Application Process: The organization needs to apply to the IRD for approval as a charitable institution or trust. The application typically requires providing detailed information about the organization's objectives, activities, governance structure, and financial records.
Governance and Control: The organization must have a governing body or board of directors responsible for its control and management. The governing body should exercise control over the organization's funds and ensure that they are used exclusively for charitable purposes.
Non-Distribution of Income: The organization should not distribute its income or assets to its members, shareholders, or any other individuals or organizations. Instead, the income and assets should be utilized solely for furthering the organization's charitable objectives.
Compliance and Reporting: Once approved, the organization must comply with reporting requirements set by the IRD. This includes maintaining proper accounting records, preparing annual financial statements, and submitting tax returns.
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