Donations can be used as a
tax minimization procedure (which represents a legal manner through which the
level of taxation can be reduced for various types of entities, including for corporate bodies) in
Ireland. For example, the
tax relief can be applied in
Ireland through the
Charitable Donation Scheme.
In this case, the
tax relief can be applied to
charities and to other types of bodies that are approved by the local authorities.
Our team of consultants in company registration in Ireland can provide an extensive presentation on the
approved donations that can be used as a means for
reducing the level of taxation.
When can a tax relief be applied in Ireland?
Donations have the purpose of sustaining a specific cause and they are usually made in the name of various types of
charitable organizations operating in Ireland. Both natural persons and
legal entities can enjoy the
tax benefits associated with
donations; the
tax relief can be obtained by a corporate body provided that the below mentioned aspects are respected:
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• the donation takes the form of money, shares, stocks and other financial instruments that can be used on the stock market;
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• the tax relief can be obtained as long as the donation is made to an eligible entity, recognized by the Irish tax authorities;
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• the donation that was made to the eligible entity can’t be repaid;
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• the donor does not benefit from the donation he or she made;
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• the donor is a resident of Ireland (however, branch offices of foreign companies operating in Ireland can also make donations to eligible organizations);
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• the minimum value of the donation has to be at least EUR 250 in a financial year.
Who can receive donations in Ireland?
As presented above, the
donations can only be made to specific entities, recognized by the local legislation. As per the
Irish legislation, a
charitable organization has to be recognized by the
Revenue Commissioners; the main legal framework available in this case is the
Finance Act 2013.
The legislation was amended to include the eligibility criteria for
charitable institutions registered in the European Economic Area as well. However, relevant rules of law regarding
donations are also established under the
Taxes Consolidation Act 1997; the main
tax regulations deriving from the available law can be presented by
our team of consultants in Irish company formation.
As we mentioned above, the minimum value per each donation of a natural person or legal entity has to be of EUR 250; however, the legislation stipulates an upper limit regarding a donation concluded in a financial year, which has to be of maximum EUR 1 million.
What are the tax benefits for Irish donors?
Irish donors can benefit from various
tax reliefs depending on the
nature of the donation. For example, in the case in which the
donation was made in cash, the
tax relief will be calculated from the
income tax. Since the
donations in Ireland can take the form of shares as well, in this case, the
donor can obtain a tax relief from the value he or she has to pay on the
income tax, but in this particular situation, the donor can also apply for a
tax relief on the capital gains tax.
In
Ireland,
donations can also take the form of property (real estate property); when
making a donation, the value of the respective
donation is calculated based on the price paid by the owner at the time of the purchase, even though the current value of the respective asset may have increased;
our team of specialists in company formation in Ireland can provide assistance on the documents that must be completed for each type of
donation.
What are the current statistics of the Irish charities?
Businessmen who want to
open a company in Ireland that can operate as a
charitable organization are legally required to register with the
Irish Charities Regulator. This is the institution that provides the
Charitable Status for such organizations and the one which maintains the annual reports on the
charitable activities developed here. Some of the most relevant data referring to this field are presented below:
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• the Irish Charities Regulator registered a total of 9,799 charitable organizations at the level of 2018;
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• at the end of 2018, there were 60,866 charities trustees registered in Ireland;
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• in the same year, a total of 1,321 organizations received the Charitable Status in Ireland;
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• the online portal of the institution had a total of 118,673 visitors;
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• the Irish Charities Regulator approved 150 new charities at the level of May and June 2019.
Businessmen interested in receiving further information on the manner in which
donations can be used as a way to
reduce taxes in Ireland can
address to our specialists.
Our consultants can advise on the procedure on
opening a company in Ireland and can explain the local
tax system and the available procedures through which businesses can reduce their level of
taxation.