Charitable donations

To benefit from income tax relief, donations must be for charitable purposes. Recipients of such donations may include charities, charitable appeals, animal shelters, political parties or registered churches. Essentially, the donation must meet two conditions:

  • the recipient must reside or have its registered office within the EU
  • the money you donate must be intended for charitable purposes – meaning science, education, culture, social, environmental or humanitarian purposes

This means that if you want to benefit from tax relief on your charitable giving, you must arrange your donations to Ukraine through European non-profit organisations. 🙂

Donating blood or plasma 

You can deduct 3.000 Kč for each donation of blood or blood plasma from your income tax base. If you donate bone marrow or organs, you are entitled to deduct 20.000 Kč from your tax base for that donation.

Returning to the more common blood or plasma donations, you can claim this deduction only if it was a gift. This means you did not receive money directly for the donation. Some donation centres offer what is known as reimbursement of travel costs associated with the donation. This reimbursement is not considered payment for the donation, so you can also claim such a donation for tax purposes.

How do you document a donation?

Some charities provide the necessary confirmation just a few days after receiving your contribution. Similarly, when donating blood, you usually leave with confirmation immediately after the donation. If you contribute to an organisation regularly, or it simply has not issued confirmation, contact it and request one.

The confirmation must contain the necessary details:

  • your identification details
      • if you donate as an individual – at least your first name, surname and home address
      • if you donate through a company – the confirmation must contain your company name, registered office address and business identification number
  • the identification details of the organisation to which you made the donation
  • how much you donated
  • the purpose for which the money will be used
  • the organisation’s signature and stamp

The confirmation also includes a sentence stating that it is issued in accordance with Act No. 586/1992 on Income Tax. You then give this correctly prepared confirmation to your accountant or attach it to your tax return yourself.

What is the maximum deduction?

I covered this in one of my previous articles.

This is not a particularly demanding administrative process. Most non-profit organisations issue confirmation automatically. All you need to do is keep it safe until the tax deadline and pass it on to your accountant. If you are unsure, feel free to get in touch and we will look at it together. 🙂