Work

From Barriers to Incentives: Reforming China’s Cultural Donation Tax System Based on U.S. Experience

Year: 2025

Type: article

Abstract: The core of the United States’ tax incentive policies for the cultural industry is anchored in Section 501(c) of the Internal Revenue Code. By offering tax incentives, these policies incentivize individuals and enterprises to make donations to non-profit cultural institutions, thereby fostering the prosperity and development of the U.S. cultural industry. China’s tax incentive policies for cultural donations are categorized into three types: those applicable to enterprises, individuals, and special donations, with variations in the deduction benefits afforded by each category. In comparison, China’s tax incentives for cultural donations have shortcomings, including excessively lengthy approval processes, inadequate coverage, fragmented management, and insufficient supervision. Drawing on the experience of the U.S. tax system, measures such as simplifying the registration procedures for non-profit cultural organizations, enhancing tax declaration requirements, exploring industry self-governance mechanisms, and establishing robust supervision frameworks constitute crucial pathways to advancing the high-quality development of China’s cultural industry.

Source: Culture

DOI: 10.3390/culture1010003

Author: Xiaoji Zhang

Institution: Chinese Academy of Cultural Heritage

Language: English

Topic: Nonprofit Sector and Volunteering

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: diamond

Funders: National Office for Philosophy and Social Sciences, Cultural Heritage Administration