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

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.