Donations

If you pay personal income tax in Latvia and give to an organisation with public benefit status, part of the gift comes back to you: a donation counts as an eligible expense (Law On Personal Income Tax, Section 10).

• How much comes back. The tax on the donated amount, usually 25.5 %. Donations, together with education and medical expenses, can be claimed up to 50 % of your annual taxable income, but no more than 600 € a year.
• How to claim it. File the annual income declaration in the State Revenue Service (VID) EDS system (for the previous year from 1 March; the three previous years can be declared too). The report we e-mail you and your payment confirmation are your proof.
• Why we ask for your name and personal identity number. So the report says who gave, and VID can attribute the donation to you. You may also give anonymously, but then no tax relief applies.
• Larger gifts. If one donation, or your donations in a year, exceed 10 minimum monthly wages, the relief requires a written donation agreement. Write to [email protected].

A donation is not a purchase: no invoice is issued and no VAT applies, but you receive a donation report.

A company that gives to an organisation with public benefit status may choose one of three corporate income tax reliefs for the year (Corporate Income Tax Law, Section 12):

• leave the donated amount out of the taxable base, up to 5 % of the profit after tax of the previous year;
• leave the donated amount out of the taxable base, up to 2 % of the total gross wages of the previous year on which social contributions were paid;
• reduce the tax calculated on dividends by 85 % of the donated amount, but by no more than 30 % of that tax.

Conditions. Nothing is owed in return (it is not advertising or sponsorship), the tax debt of the company on the first day of the period does not exceed 150 €, and the recipient does not display the brand of the donor publicly. Listing the name of the donor among supporters is allowed.

How to give. A donation from a company account is best made under a donation agreement stating its purpose. After the year ends we publish a report on donors and on how the gifts were used. For an agreement or documents, write to [email protected].