Tax benefit for donors assisting flood victims

September 19th, 2018

The Revenue Department would like to announce donors who make donations to help flood victims to government agencies or through companies or juristic partnerships or any other juristic persons registered with the Revenue Department as donating agents are entitled to claim the amount of money or value of donated items as deduction or allowance in calculating income tax under the following conditions;

1. An individual who donates money can use the donated amount as an allowance in calculating his personal income tax. When combined with other donations, the total amount shall not exceed 10 percent of net assessable income.

2. A company or a juristic partnership who donates money or items can use the donated amount as an expense deduction in calculating its corporate income tax. When combined with other expenses for public charity or for public interest, the total amount shall not exceed 2 percent of net profits.

3. A donor that is a VAT registrant shall be VAT exempt on the donated value of its own goods or purchased goods for flood victims.
For further inquiries, please consult with any Area Revenue Office nationwide or RD Intelligence Center at Tel. 1161.