* The association “Tavi draugi” has been granted the status of a Public Benefit Organization (PBO). Therefore, anyone donating to the association “Tavi draugi” can benefit from tax relief in accordance with the provisions of the relevant law.
Legal Entities
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 fiscal year’s profit after calculated taxes;
- Exclude the donated amount from the taxable base, but not exceeding 2% of the total gross wages calculated for employees in the previous fiscal year, from which social insurance contributions were paid;
- Reduce the corporate income tax calculated on dividends by 85% of the donated amount, not exceeding 30% of the total corporate income tax calculated on dividends.
This restriction applies to the total amount of donations made during the fiscal year.
Information: Article 12 of the Corporate Income Tax Law.
Individuals
Can receive a refund of 20% of the donated amount as personal income tax.
Note:
The reduction of taxable income due to eligible expenses (including donations) must not exceed 50% of the taxpayer’s taxable income for the tax year, and the total reduction is capped at 600 EUR.
Eligible expenses include donations to PBOs and political parties, as well as educational and medical expenses.
Information: Article 10 of the Personal Income Tax Law.
To receive a tax refund for donations made in the previous year, individuals must submit an annual income declaration to the State Revenue Service, including all eligible expenses, such as donations.