Completing Form CD22A as an annex to the Section 88 tax exemption application

Form CD22A: The Annex to the Section 88 Tax Exemption Application

Applicants for charitable status under Section 88 of the Inland Revenue Ordinance (Cap. 112) must submit the Form CD22A annex. This mandatory supplementary document provides the Inland Revenue Department (IRD) with the detailed operational and financial information needed to prove the organisation is established for charitable purposes and that its income will be applied exclusively to those purposes. The IRD will not process an exemption application without a properly completed Form CD22A.

Section 88 of the Inland Revenue Ordinance grants tax exemption to charitable institutions or trusts of a public character, provided their profits are applied solely for charitable purposes. Form CD22A is the vehicle for supplying the evidence the Commissioner of Inland Revenue requires to confirm an organisation meets these statutory criteria.

What Is the CD22A Form Section 88 Annex?

The IRD prescribes the CD22A form section 88 annex to collect supplementary information not captured on the main application form. It is a structured questionnaire. You must disclose the applicant's past and intended activities, sources of income, proposed expenditure, governing body composition, and remuneration arrangements for officers and related parties.

The annex gives the IRD a complete picture of the applicant’s operations before any exemption is granted. Section 88 exemptions are permanent unless revoked, so the IRD must be satisfied at the outset that the organisation will not become a vehicle for private benefit or tax avoidance. Form CD22A provides the evidence base for that assessment.

Section 88 Annex Form Hong Kong: Purpose and Legal Basis

The section 88 annex form Hong Kong draws its authority from the Inland Revenue Ordinance (Cap. 112). Section 88 itself does not prescribe the application form; the Commissioner may require any information necessary to determine eligibility. Form CD22A is the standard means of exercising that power.

The IRD will not consider a Section 88 exemption application without Form CD22A. The annex must be completed in full. Incomplete submissions are returned without substantive review. The IRD may request further information even after the annex is filed, particularly where activities are novel or income sources are complex.

Tax Exemption Application Annex: Required Information

The tax exemption application annex (Form CD22A) requires the following information.

List of Activities (Past and Future) - A detailed description of the charitable objects as stated in the governing documents. - A narrative of activities actually carried out to date, including dates, locations, beneficiaries and scale of operations. - A forward-looking plan of activities for at least the next two financial years. - Evidence that all activities fall within one or more of the recognised heads of charity: relief of poverty, advancement of education, advancement of religion, or other purposes beneficial to the community.

Sources of Income - A complete listing of all income streams received since establishment. - For recurring income (donations, grants, fees), provide donor details and amounts. - For one-off or irregular income, explain the circumstances. - Any income from commercial activities must be identified separately, with an explanation of how it relates to the charitable objects.

Proposed Expenditure - A budget for the current financial year and projections for the following year. - Breakdown of expenditure by category: programme costs, administration, fundraising, and capital expenditure. - Policies on reserve accumulation and investment of surplus funds.

Governing Body - Full names, addresses and occupations of all trustees, directors, or committee members. - A statement confirming that no member of the governing body has been convicted of an offence involving dishonesty or fraud. - The appointment and removal procedures for governing body members.

Remuneration of Officers - A complete disclosure of any remuneration, benefits, loans, or other financial arrangements provided to directors, trustees, or any person connected with them. - If no remuneration is paid, a statement to that effect. - Details of any reimbursement policies for out-of-pocket expenses.

Related Party Transactions - A list of all transactions between the applicant and any director, trustee, relative, or entity controlled by such persons. - For each transaction: nature, amount, terms, and whether it was at arm’s length. - Policies governing future related party transactions, including approval procedures and conflict of interest management.

Form CD22A Requirements: Supporting Documents

Form CD22A requirements extend beyond the form itself. A package of supporting documents must accompany the annex.

• A certified true copy of the applicant’s governing document (trust deed, memorandum and articles of association, constitution, or equivalent).
• A certified true copy of the applicant’s certificate of incorporation or registration.
• Audited financial statements for the most recent financial year (if any). For newly formed organisations, an initial statement of affairs and a projected budget.
• Minutes of meetings of the governing body relating to the adoption of the charitable objects and the decision to apply for Section 88 exemption.
• Any licences, permits, or regulatory approvals required to carry out the charitable activities.

All documents in a language other than English or Chinese must be accompanied by a certified English translation. The person certifying copies must state their qualifications and relationship to the applicant.

Filing and Processing

Submit Form CD22A and its supporting documents to the Inland Revenue Department by post or in person at the relevant branch office. There is no statutory timeframe for the IRD to process a Section 88 application, but a complete and well-prepared annex reduces processing delays. The IRD may issue queries or request further information. Respond promptly to avoid abandonment of the application.

Once the exemption is granted, the IRD issues a letter confirming the effective date. Retain this letter with the filed Form CD22A. The IRD may review the exemption periodically to confirm continued compliance with Section 88.