Donations , Charities and Tax

[mneylon]

Does anyone know how charitable donations work in Ireland in relation to tax (for a company - not an individual)?

Also which charities are setup to handle them sanely (I contacted one a few months ago and they still haven't replied)

 

[link8r]

Tried looking - not a whole lot of information out there at all. Revenue's website is supremely unhelpful (as usual). Often, the UK's Revenue site outranks it, even for searches with Ireland in it.

 

[mneylon]

Well UK tax rules wouldn't be of much use to me

 

[link8r]

No, I'd imagine not. Have you tried contacting Irish Revenue?

 

[mneylon]

I was hoping to avoid that since they can be "fun" to deal with

 

[Sinead Hanley]

I think there is Tax Relief for "eligible charities" - these are authorised by Revenue

The minimum donation is €250 and there is no maximum figure - obviously the donation cannot be a loan i.e. cannot be repayable - nor can it be of specific benefit to the donor or any person connected with the donor i.e. you cannot dictate to the Charity how they spend the donation

This is the case for a person - I'm not sure if it's the same for a company

Hope this helps

 

[Sinead Hanley]

Just found this in a Tax Book!!

Donating through your company
If a company donates to an approved charity, the donation can be treated as a trading expense (subject to a minimum donation per charity of €250), and so will be deductible for corporation tax.

Example F: Freda owns and operates her own business through a company. The company donates €1 million to a separate charitable foundation. The company can then write this donation off as a legitimate trading expense. This will result a corporation tax saving of €125,000 (at a tax rate of 12.5%).

 

[link8r]

Well done Sinead - couldn't find anyhting online!

 

[andywozhere]

You should find more detailed information here: Tax Relief On Donations To Charities | The Wheel