A study of the affect of tax policies towards environmental NGOs in China

Degree Name

MS in Management

First Advisor

Ralph Meima


This paper provides an overview and evaluation of the tax system that has been so central to the development of environmental NGOs in the People's Republic of China. In this paper, environmental NGOs were divided into three categories in regards to the issue of taxation. First, the author reviewed and analyzed the existing laws and regulations concerning the issue of taxation as applied to environmental NGOs. This was further expanded upon by introducing the current tax situation of environmental NGOs and their dealings with the tax issue. Second, the author evaluated the current tax structure in relationship to the development of environmental NGOs in China. Then, the author concluded that China's taxation system towards NGOs is in the beginning stage of development, and that the absence of appropriate tax incentives is a major obstacle to NGO development. First the author suggested that the government should create better tax laws as early as possible to aid the healthy development of environmental NGOs, treat different environmental NGOs the same on tax issues, and encourage corporate giving by providing favorite tax policies which are guaranteed by law. Secondly, environmental NGOs may have to continue advocating for governmental solutions for the tax situation while simultaneously running for-profit commercial businesses to support non-profit environmental projects if the current laws and regulations are not going to change in the near future. They must also persist in advocating the government for a better solution of the tax issue.

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