Tax allowances

  • Enterprise income tax shall be reduced for by 75 per cent of amounts donated to public benefit organisations (Section 20 of the Law On Enterprise Income Tax).
  • Total tax allowance may not exceed 20% of the total tax amount.
  • A donation is physical property or financial means, which the payer, on the basis of a contract, transfers free of charge to the Children's Hospital Foundation to achieve the purposes specified in the articles of association.

A tax allowance shall not be applied if:

  • the taxpayer on the first day of the second month in the taxation period is in tax arrears in excess of EUR 150
  • the purpose of the donation contains a direct or indirect indication to the specified recipient of the donation, which is an undertaking or a related party associated with the donor, or an employee of the donor or a family member of such employee

To receive the tax allowance one should:

  • fill in the corporate tax return for the year and specify the donated amount
  • file the return with the SRA following general procedures

The documents that should be submitted to the SRS:

  • A copy of the decision by the Ministry of Finance granting the status of a public benefit organisation to the Children's Hospital Foundation
  • Documents supporting the amount donated to the Children's Hospital Foundation (a cash receipt or a bank transfer order - legal entities should store them for five years)

 

It is possible to make a donation contract!