Do the tax laws encourage gifts (either during the donor’s lifetime or on death) to a charity, public foundation or similar entity, and how do the relevant tax rules apply?
Gifts during the donor’s lifetime or on death benefit from a total exemption of gift and/inheritance tax provided the beneficiary is qualified as charities of public interest (“fondation d’utilité publique”).
Reductions of income tax, ISF and IFI are also granted when gifts are made to qualified charities.
An exemption from inheritance and gift tax applies transfers to public entities or legally recognised foundations or associations having the exclusive purpose of assistance, study, scientific research, education, instruction or any other purpose with public benefit. The exemption also applies to transfers to legally recognised public entities and foundations and associations other than those mentioned above, as long as such transfers be made for the purposes indicated above (assistance, etc.). Both the exemptions also apply to foreign public entities and associations and foundations established in EU or EEA Member States, or, subject to a requirement of reciprocity, established in other foreign states.
Yes. A person who makes a donation to non-profit organisations is eligible to receive a tax credit under section 46 of the Income Tax Ordinance, provided certain conditions are met.
The tax credit is equal to 35% of the donation. However, in any tax year the credit granted must not exceed the lower of 30% of the assessee's chargeable income in that particular year or NIS 9,184,000 (for 2017).
Gifts [exceeding eur 100,00] to charitable foundations, educational and cultural non-profit associations, certain research institutions, Mount Athos monasteries and other relevant entities will reduce the individual’s income tax by 10%, computed on gifts amounts not exceeding 5% of the individual’s total yearly taxable income.
Furthermore, a large number of educational, religious, cultural, athletic, governmental, research, medical entities are subject to zero or minimal [0,5%] gift or inheritance tax.
Transfers on death or by gift to charities etc. are exempt from inheritance or gift tax. However, gratuitous transfers to foreign charitable entities are only tax free if certain conditions are met which has to be confirmed in each individual case.
In each region, reduced flat rates apply for gifts or bequests to certain bodies and entities such as not-for-profit organisations, international not-for-profit organisations, private foundations and public foundations, or similar entities established in the EEA:
- in the Flemish Region: 8,5% for bequests and 5,5% for gifts,
- in the Brussels Capital Region: 25% or 12,5% for bequests and 7% for gifts, and
- in the Walloon Region: 7% for bequests and 7% for gifts (subject to conditions).
British Virgin Islands
See answers to 6 above and 8 below.
Gifts to qualifying institutions can be claimed back as tax credits in part, this must be done so within a period of four years following the year which the gift was made.
A taxpayer may only claim a tax credit if that taxpayer:
- made a donation of $5 or more to an approved donee organisation where there is no identifiable direct benefit to the taxpayer (or a family member);
- earned taxable income during the same year;
- was a NZTR at any time during that tax year; and
is an individual.
The total gifts that may be claimed may not exceed the taxpayer’s taxable income for the year.
Gifts and bequests of Monaco-based assets to charities (other than specific foundations exempted under Monaco law) are subject to gift and succession tax at 16 per cent.