How to donate % of your income to nonprofit organizations?

This year, taxpayers also have the opportunity to donate 2% of their paid taxes to non-profit organizations, civic associations, foundations or other selected recipients. The natural and legal persons submitting the tax return do so directly in the tax return. Employees to whom the employer carries out annual tax clearance shall submit to the tax office a statement of remittance of the tax paid. The declaration shall be made on the prescribed form. The number of donors, associations and the total amount increases every year.

This year it is possible to donate 2% of its paid taxes. Employees must do so on a structured form. An employee to whom the employer has made an annual settlement of advances for income tax from employment for the year 2019 submits a Declaration of remittance of the tax paid by 30.04.2020. Attached to the declaration is also the Confirmation of payment of tax, which is issued by the employer no later than 15.04.2020.

A citizen or sole trader who submits a tax return for personal income tax for the year 2019 is entitled to declare in the tax return that the share of paid tax up to 2% should be remitted to the organization designated by him. It may also point out 3% if in 2019 volunteering lasted for at least 40 hours. In such a case, he is also obliged to submit a written confirmation attached to the tax return. A natural person may donate 2% (3%) to only one recipient, with a share of the tax paid being at least EUR 3.

A legal entity filing a corporate income tax return for 2019 is entitled to declare in the tax return that the share of the tax paid should be remitted to the designated recipient up to 1% of the tax paid. If the condition of donating 0.5% of the tax paid is fulfilled at the latest by the deadline for filing the 2019 tax return to designated taxpayers who are not established or established for business purpose defined in the Income Tax Act, the legal entity can remit share of tax paid up to 2%.

Legal entities may also transfer 1% (2%) to several beneficiaries, the minimum amount in favor of one beneficiary is EUR 8. Natural and legal persons can choose from the list of beneficiaries for 2020, f.e. a nonprofit providing a community service, a civic association, or a foundation. The list is kept by the Notary Chamber of the Slovak Republic and is publicly available on the website www.notar.sk as well as on the portal of financial administration. Those who postpone the filing of the tax returns point to the proportion of the tax paid in the extended period in which they will file the tax return.

The amount of donations is growing every year. Last year, almost 905,000 taxpayers (852,734 individuals and 52,252 legal entities) donated a share of the taxes paid. 15,590 donated more than 73 mil. euros.

Resource: financnasprava.sk

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