Abstract: Tax relief is an important measure to enhance charity in many nations. In China, there are already some reliefs or exemptions in tax system for charitable organizations, donors and beneficiaries. However, for the lack of higher and scientific law system and other factors,the incentive effect of tax relief is not apparent. The lawmaking of Charities Act of China is on its way to the legislative formally, which is a good chance for tax relief and exemption of charity. After comprehensive review of China's tax relief of charity, the paper suggests collaboration between charity and tax law systemand construction of a consolidated, normative and inclusive law system for tax relief and exemption of charity.