What are the tax benefits of charitable donations in different countries?
Tax-Efficient Giving in Europe & UK
Country | Tax Benefit Type | Deduction/Credit Limit | Claim Method | Documentation Required |
|---|---|---|---|---|
Poland | Deduction from income | Up to 6% of taxable income | Annual tax return | Receipt or bank transfer proof |
Czech Republic | Deduction from tax base | Min: 2% of tax base or CZK 1,000; Max: 15% of tax base | Annual tax return | Receipt from charity |
Slovakia | NA | not tax deductible (for charitable donations) | NA | NA |
Hungary | Deduction for direct donations | 1% of Personal income Tax | Annual tax return | Donation receipt |
Romania | Deduction from income | 3.5% of Annual Income Tax | Annual tax return | Documentation from charity |
Bulgaria | Deduction from taxable income | Limited to 65% of the annual taxable base | Annual tax return | Donation receipt |
Croatia | Deduction from income | Up to 2% of income | Annual tax return | Donation receipt |
Slovenia | Deduction from taxable income | Up to 1% of taxable income | Annual tax return | Donation receipt |
Lithuania | Deduction from annual income | Maximum 40% of the taxable income | Annual tax return | Donation receipt |
Latvia | Deduction from annual income | Specific percentage cap (not specified) | Annual tax return | Donation receipt |
Estonia | Deduction from taxable income | up to 3% of social tax payments or 10% of last year’s profit | Annual tax return | Receipt from listed NPOs |
Portugal | Tax Credit | 25% of donation value; subject to a cap of total tax liability | Annual tax return (Modelo 3 IRS) | Receipt from certified organization |
Greece | Deduction from income | 20% of donation, max 5% of total income | Annual tax return | Donation receipt |
Cyprus | Deduction from taxable income | Percentage-based cap | Annual tax return | Donation receipt |
Malta | Deduction from income | Deduction up to a specified limit | Annual tax return | Receipt from registered organization |
United Kingdom | Tax relief via Gift Aid | 25% added by the government to eligible donations | Opt-in at donation point via Gift Aid checkbox | Donor must be a UK taxpayer; charity must be registered |
France | Tax credit | 66% of donations to most charities (up to 20% of taxable income); 75% for approved causes | Annual income tax return (form 2042 RICI) | Donation receipt from approved charity |
Germany | Deduction from taxable income | 20% of income deductible; political donations: 50% off tax | Annual income tax return (Einkommensteuererklärung) | Zuwendungsbestätigung (donation certificate) |
Netherlands | Deduction from taxable income | Regular donations (periodic gifts) fully deductible if ≥5 years and notarial deed; otherwise up to 10% of income | Annual tax return | Official receipt and notarial deed (if periodic) |
Belgium | Tax credit | 5% of total net income, with a maximum deduction of €500,000. | Annual tax return | Proof from beneficiary organization |
Luxembourg | Deduction from taxable income | Donations deductible up to 20% of income or max €1,000,000/ year and a minimum €120 | Annual tax return | Proof from beneficiary organization |
Austria | Tax deduction at source | 10% tax deduction for donations to approved NPOs | Annual tax return or via payroll integration | Electronic submission by the charity |
Ireland | Tax reclaim by charity | 31% tax relief reclaimed by the charity (not the donor) for donations ≥€250 | Donor completes CHY3/CHY4 form | Charity submits claim with donor’s consent |
Denmark | Deduction from taxable income | Up to DKK 17,300 (approx.) per year (adjusted annually) | Annual tax return (SKAT auto-filing available) | CPR number + receipt; many charities report directly |
Sweden | Tax credit | Up to SEK 3,000 tax deduction for yearly donations of at least SEK 2,000 | Tax return (automatic if donor provides ID) | Charity must report donation to Tax Agency |
Finland | Limited deductibility | Only applicable for donations to universities or science; at least €850-€500,000 for individuals (very rare) | Annual tax return | Donation receipt |
Norway | Deduction from taxable income | Pre-approved charitable institutions are deductible up to NOK 25,000 annually | Automatic via registered charities or in tax return | Donation receipt |
Iceland | Deduction from taxable income | Up to 1.5% of total income | Tax return | Valid receipt from approved NGO |
Switzerland | Deduction from taxable income | Federal and cantonal limits apply (up to 20% of net income) | Annual tax return | Certified receipt from registered organization |
Tax-Efficient Giving in America
Country | Tax Benefit Type | Deduction/Credit Limit | Claim Method | Documentation Required |
|---|---|---|---|---|
United States | Deduction from taxable income | Up to 50% of adjusted gross income (AGI) for cash donations to qualifying 501(c)(3) charities, but 20% and 30% limitations apply in some cases | Itemized deductions via IRS Form 1040 + Schedule A | Official receipt; written acknowledgment if ≥$250 |
Canada | Federal & provincial tax credit | 15% on first CA$200, 29% or higher above that federally; additional provincial credits | Annual tax return (T1 General, Schedule 9) | Official donation receipt from registered charity |
Tax-Efficient Giving in Australia
Country | Tax Benefit Type | Deduction/Credit Limit | Claim Method | Documentation Required |
|---|---|---|---|---|
Australia | Deduction from taxable income | No specific cap, but must be to a Deductible Gift Recipient (DGR); typically limited to extent of taxable income | Annual tax return (via myTax or registered tax agent) | Donation receipt with DGR name and ABN; amount and date |
What is Gift Aid and Who Can Use It?
Gift Aid is a UK government scheme that lets charities claim an extra 25% on donations from UK taxpayers. For example, if you donate £10, we can turn it into £12.50 at no extra cost to you!
Who can use Gift Aid?
You must:
- Be a UK taxpayer (paying Income Tax or Capital Gains Tax).
- Have paid enough tax this year to cover the 25%.
- Donate your own money (not company funds).
How do I add Gift Aid to my donation?
If you’re eligible (e.g., a UK taxpayer), simply opt in when donating by ticking the box consenting to share your tax details. This confirms you meet your country’s tax rules for charitable giving. Tax benefits depend on local regulations, so check your country's tax policies for details.
How do I get a tax receipt?
Download it instantly after making a donation! Look for the "Download Tax Receipt" link in your confirmation email or account. You can also download from the website after donating. This receipt may help with tax deductions in EU countries.
Updated on: 28/07/2025
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