Deductibility of Humanitarian Donations

As from 1 January 2009 businesses may donate a maximum of 10 % of the previous year’s profit to organizations engaged in humanitarian aid, development cooperation or emergency aid. Individuals may donate up to 10 % of their previous year’s income to such organizations.

Requirements for businesses

Donations in cash or in kind are deductible as expenses to organizations engaged in

• charity in the EU/EEA
• anti-poverty programmes in emerging countries by encouraging economic and social development
• national and international emergency aid.

Furthermore, donations in cash to organizations collecting donations are deductible as expenses if the donations collected are used for one of the three favoured purposes mentioned above. Membership fees for such organizations are not deductible. Donations are only deductible up to 10 % of the previous year’s profit.

Which organizations benefit from this provision?

At the time of a donation the favoured organization has to be on a list which will be published on the website of the Ministry of Finance. The lists for 2009 will, for the first time, be published by 31 July 2009 by the Tax Office Wien 1/23. Those lists are valid for donations from 1 January 2009 onwards. The Tax Office Wien 1/23 endeavours to publish any changes to the list in due time.

How to profit from this tax relief?

Amounts donated have to be included in the tax return and have to be proven by supporting documents upon request. Donations to favoured organizations made within the year 2009 are deductible. Certainty on the deductibility will be given only when the lists are published on the website of the Ministry of Finance.

Requirements for individuals

Individuals may claim donations as special deductions under the same conditions as businesses may claim them as expenses, however, only up to a maximum of 10 % of the previous year’s income. Donations for which compensations are granted (e.g. charity events) are not deductible.

As from 1 January 2011, the social security numbers or the identification numbers of the European health insurance card will have to be indicated by individuals on the donation receipt.

How to profit from this tax relief?

Amounts donated have to be included in the tax return and have to be proven by supporting documents upon request. As from 2011 the organizations collecting donations will directly report to the tax office. Donations to favoured organizations made within the year 2009 are deductible. Certainty on the deductibility will be given only when the lists are published on the website of the Ministry of Finance.

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