Deductibility of donations means that voluntary donations (donations) are deductible up to a limited amount as operating expenses or special expenses.
Table of Contents:
- Donation deductibility new 2017
- Requirements and criteria
- Donations in kind
- Additional information
You can make your donation to the Make-A-Wish Foundation® Austria as a business edition (as a company) or as a individual (private)
Donation deductibility new 2017
From January 1st, 2017 there will be a change in the law for private donations . Company donations are not affected by this new regulation.
The legal change will largely automate the transfer of private donations to the tax office for income tax returns and employee tax assessments from 2017. You no longer have to claim your donations separately in your income tax return and employee assessment – this should be done automatically from 2017. This means that you only have to provide the following data for your private donation:
- First name
- Date of birth
You must ensure that the spelling is correct (the name matches the one on the registration form) so that the donation is recognized as deductible by the tax office.
The Make-A-Wish Foundation automatically sends your donation confirmation to the tax office.
If you do not want to make a donation : If you do not want this electronic data transfer:
- tick the appropriate box on our donation form (available from 2017)
- do NOT indicate your date of birth on payment slips.
However, your donation payment can then no longer be used as a special edition.
Company donations are not affected by this new special regulation. Automatic data transmission is to be used for all payments made from 2017 onwards. Whether these changes can actually be implemented is still being discussed. In any case, Make-A-Wish does its part to ensure that your donation is and remains deductible.
Deductibility of donations Requirements and criteria
The deductibility of donations in Austria is subject to certain conditions, which can be found in the Income Tax Act (EStG). In order for a donation to be tax-deductible, two criteria must be met:
- Donation to a donation-favored institution (see under ” Donation deductibility list “) The Make-A-Wish Foundation® Austria fulfills this requirement.
- Amount : Favored up to an amount of 10% of your annual income (see more details under ” Donation deductibility amount “)
For the deductibility of donations, there is a list of institutions benefiting from donations. You can view the current version of the BMF (tax office) donation deductibility list on the website of the Austrian tax office .
The Make-A-Wish Foundation® Austria has also been on this list since 2009 under registration number SO 1373. You can therefore fulfill a heart’s desire for children to save tax.
Donation deductibility amount
The amount that can be deducted from the donation depends on the income achieved, with the maximum amount generally being 10% .
The deductibility of donations for companies and companies amounts to 10% of the profit for the current business year / the total amount of income for the current year. In addition, the portion of the donation that exceeds 10% of the profit can be deducted as a special expense, namely up to 10% of the total income (such as additional income from renting and leasing or another dependent activity).
The deductibility of donations for private individuals is 10% of the total amount of income for the current year (taking corporate donations into account). Before 2013, the previous year’s income had to be used instead of the income for the current year. The total amount can be seen on the income tax notice (for the previous year).
The deductibility of donations consists of donations from both private and business assets. However, all donations are to be added together and only up to 10% of the total income is tax deductible.
Application for deductibility of donations
In order for the donations to be tax deductible, they must be claimed accordingly.
As a company , donations for tax deductibility from business assets must be deducted as part of the profit determination.
Private individuals must include donations for tax deductibility as special expenses in the employee assessment.
At the request of the tax office, the donations must be proven both as an entrepreneur and as a private person. The general seven-year retention period applies to the receipts (e.g. payment slips, other proof of payment). These documents are to be presented to the tax office during an audit.
Deductibility of donations in kind
Companies can make donations in cash and in kind (e.g. their own products) with tax effects. You can donate to the Make-A-Wish Foundation® Austria such as hardware and software, marketing articles, etc. Simply get in contact with us .
For private donations , only cash donations are generally recognized for tax purposes. Donations to scientific and cultural institutions of the federal government are an exception ( section 4a (3) 1 to 3 and 4 of the Income Tax Act ). You can still send donations in kind to the Make-A-Wish Foundation® Austria (these are only not tax deductible).
- Donation deductibility calculator (How much do I save through a donation?)
- Further information on the deductibility of donations from the Ministry of Finance (BMF)