Xinhua - English-99% of firms never donate to charity

Xinhua - English: "
Charity groups urged to maintain high credibility

BEIJING, Nov. 21 (Xinhuanet) -- No more than 100,000 Chinese companies, a merely one percent of the country's total ten million registered firms, have had a history of making donation to charity, said Chen Xinnian with the National Development and Reform Commission.

But the rest 99 percent enterprises that never engage in charity work feel unfair to be called 'parsimonious'. They complain of the current tax law under which corporations' donations are exempted from income tax if the amount is within 3 percent. The ratio is 30 percent for individuals.

'It's not we don't have goodwill, but charitable work does not deserve corresponding result under present tax law,' said Wang Jianlin, chairman of the board of Dalian Wanda Group, a famous company in northeast China's Liaoning province. 'The more you donate, the more tax you have to pay.'"