Tax Relief on Charitable Donations
In April 2001 the Minister for Finance introduced a scheme of tax relief on all philanthropic gifts over €250 toward approved bodies and eligible charities. The 6th Westmeath Scout Group is such a body and therefore all gifts over €250 are eligible for tax relief. The recipient of the benefit depends on the type of taxpayer making the donation:
| PAYE Taxpayers: In the case of PAYE taxpayers, donations of €250 + received by the 6th Westmeath Scout Group, or any other registered charity, in one tax year are treated as having been received “net” of tax. For example: An individual on the standard rate of tax (i.e. 20%) makes a donation of €500. The value of the donation to the IHF = €625 i.e. €500 x 100 80 The tax associated with the donation = €125. The 6th Westmeath Scout Group will be able to claim a repayment of €125 from the Revenue Commissioners. |
| Self-Assessed Individual: Self-assessed taxpayers can reclaim the income tax they pay on donations of €250+ in any one tax year. For example: A self-assessed individual on the standard rate of tax (i.e. 20%) makes a donation of €500. The cost to the taxpayer is €400. The taxpayer claims a deduction for the donation on his/her tax return. |
| Corporate Donations: The company claims a deduction for donations of €250 + in any one tax year as if it were a trading expense. |
The 6th Westmeath Scout Group's registered Charity number is available on request. This information is taken from the Revenue Commissioner’s paper “Scheme of Tax Relief for Donations to Eligible Charities and other Approved Bodies, Under Section 848A, Taxes Consolidation Act 1997. A full copy of this document is available at http://www.revenue.ie/en/tax/it/leaflets/chy2.pdf.