There are times when you stumble upon a good cause or a great movement, and you think to yourself: “I want to contribute to this. I think this is important!”. That’s fine, of course. The recipient will be very happy with your contribution, you will feel good and with a little luck, the goal of the effort is achieved. Show You transfer the money and that was that. Or, maybe not? There’s a small chance the money you contributed was enabled for tax deductions for donations. That’s a bonus, of course! The government in certain countries will allow non-profit organizations to offer tax benefits such as tax rebates, tax-free donations, tax credits or tax-deductible donations to people who donate to good causes.
Are Crowdfunding Donations Taxable?In the Netherlands, for example, patrons can deduct the value of their contribution from their taxable income. In the UK, Gift Aid allows charities to reclaim the base rate already paid by the donor on the contribution. In the US, Charitable Contributions Rebate allows taxpayers to deduct tax from cash donations and possessions to charities and in Ireland, the Charitable Donation Scheme allows tax relief, on eligible charitable donations, to approved charities. In this article, we’ve compiled a list of charity tax programs in various countries around the world. We have collected this information to provide you with an overview of taxation in Europe as well as in USA including tax programs and tax deductions for donations, using only sources that are freely available on the Internet. Here is a list of countries with their tax deductions for donations and tax-free donation policies. The article covers: NetherlandsDonors can deduct the value of their donations from their taxable income, provided the charity is registered as a public benefits organization (ANBI). Income tax rates in the Netherlands vary from 19% to 52%, and tax-free donations are limited to 10% of the annual taxable income. Currently, the scheme is used by about 8% of taxpayers. Charities are not required to provide information about the donations received to the tax authorities. Companies are also entitled to deduct the annual value of their gifts up to a maximum of 50% of their annual profit/income. Donations receivedIndividuals can receive crowdfunding donations without having to pay tax if:
For more information on this and for information for organizations please visit the WhyDonate website, or visit the tax authorities’ website. Austria |