From 2013 onwards tax relief in respect of the charitable donations made is given to the charity organisation rather than the individual who made the donation.
If you make a charitable donation, tax deductions (granted at a rate of 31%) will be applicable for the amount you donate. However, instead of the person who made the donation gaining from the tax deductions, the charity will get the benefit.
Simply put, the tax you paid on the donation can be claimed by the charity. So for example, the total figure that the charity will receive on a donation of €500 is €725 (a benefit of €225).
An annual limit of €1 million per individual can be donated under the scheme.
Charities are required to obtain certificates from their donors confirming their PPS numbers, eligibility of the donation, and the fact that the tax they’ll pay for the year will be at least equal to the relief due to the charity.
Note: Relief will be restricted to 10% of the donor's annual income if there is a connection between the donor and the approved body.
Rules for donations to approved bodies (an eligible charity, educational institution or body approved for Education in the Arts by the Minister for Finance) including:
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It must be in the form of money or designated securities (quoted shares and debentures) or a combination of both
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It must not be repayable to the donor
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It must not benefit the donor or anyone connected with the donor
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It must not be a condition or connected with any arrangement involved in obtaining a property other than by way of a gift from the donor to the approved body
You’re connected with an approved body at the time you make a donation if:
- You’re an employee or member of that body
- You’re a member of another approved body connected with the first approved body
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