Several companies want to support certain organizations, but it\u2019s worth considering what benefits this might have for tax purposes.<\/p>\n
Donation shall mean a financial support or payment in kind provided without consideration<\/strong> to public-benefit organizations for supporting their activities to achieve their basic or public benefit purposes.<\/p>\n Donation can be:<\/p>\n Long-term donation:<\/p>\n The donator undertakes to<\/p>\n The donator must have a certificate<\/strong> issued by a public-benefit organization receiving the donation on the offering and transfer of the donation, which has been issued to the donator for the purpose of determining its tax base.<\/p>\n In possession of the certificate,<\/p>\n The certificate must include<\/p>\n Available tax reliefs for companies subject to corporate tax<\/strong>:<\/p>\n Pursuant to paragraph z) of Subsection 1) of Section 7 of the Corporate Tax Act, the donator\u2019s pre-tax profit can be reduced by<\/p>\n but together by not more than the amount of the pre-tax profit.<\/p>\n Thus, in possession of the certificate, the donation is:<\/p>\n Difference for companies subject to small business tax<\/strong>:<\/p>\n With the certificate, the amount donated becomes a recognized cost for the donator.\u00a0 However, the donator cannot benefit from other tax reliefs.<\/p>\n Note for small business tax and corporate tax:<\/p>\n A support that\u00a0is not a donation<\/strong> is a \u00a0recognized cost <\/strong>only if the donator has a <\/strong>statement from the recipient of the donation<\/strong> that <\/strong>it would not be loss-making without the donation in the tax year when the donation was provided and that it has paid corporate tax on the donation.<\/p>\n Finally, let\u2019s turn briefly to the 2022<\/strong> change in donations, which concerns donations to public trust funds<\/strong>.<\/p>\n This will be the so-called 300% tax base allowance<\/strong>.<\/p>\n","protected":false},"featured_media":3079,"template":"","tags":[],"evszam":[556],"szakmai_cimke":[535,530],"class_list":["post-3075","szakmai-hirek","type-szakmai-hirek","status-publish","has-post-thumbnail","hentry","evszam-2021-en","szakmai_cimke-corporate-tax","szakmai_cimke-small-business-tax"],"yoast_head":"\n\n
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To whom can donations be provided?<\/h3>\n
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What tax reliefs can donators enjoy?<\/h3>\n
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