The association “Tavi draugi” has been granted the status of a Public Benefit Organization (PBO). Therefore, anyone who donates to the association “Tavi draugi” can make use of tax relief, in accordance with the relevant legal provisions.
During the reporting period, a legal entity may apply one of three tax relief options:
Exclude the donated amount from the taxable base, but not exceeding 5% of the previous reporting year’s profit after taxes.
Exclude the donated amount from the taxable base, but not exceeding 2% of the total gross salaries calculated for employees in the previous reporting year, from which mandatory state social insurance contributions (VSAOI) have been paid.
Reduce the corporate income tax (CIT) calculated on dividends by 85% of the donated amount, not exceeding 30% of the total corporate income tax calculated on dividends.
The above limitations apply to the total amount of donations made during the reporting year.
Article 12 of the Corporate Income Tax Law supports the above: https://likumi.lv/ta/id/292700#p12
Individuals can receive a refund of 20% of the donated amount as income tax reimbursement.
The total amount of allowable deductions from a person’s taxable income (including donations) must not exceed 50% of the person’s taxable income for the taxation year, and no more than 600 EUR.
Allowable deductions include donations to public benefit organizations and political parties, as well as education and medical expenses.
To receive a tax refund for donations made in the previous year, an individual must submit an annual income declaration to the State Revenue Service, including all allowable deductions — including donations.
Article 10 of the Law “On Personal Income Tax” supports the above: https://likumi.lv/ta/id/56880#p10
Izvelēties daudzumu