Tax deduction for donors

Acording to §15/1 of law no. 586/1992 about income tax have individuals and acording to §20/8 corporate bodies right to deduct donation from tax basis.

1. Individual donor (citizen, emploee, self-employed)

Individual donor can, according to income tax law, deduct donation from tax basis if donation amount is bigger than 2% of donor tax basis or bigger than 1000CZK. No more than 10% of tax basis can by deducted.

If you are self employed or an emploee who does his or her taxation by herself or himself, you can deduct donations in your taxation form.

If you are an emploee whoose taxation is done by emploer, give all donation contracts for whole previous year to your accountant office by 28^th February. Lowered tax basis will appear as incerasion on your March salary.

2. Corporate body donor

Donor – corporate body can deduct donation from taxes if donation or all donations to one organization is at least 2000 CZK annualy. Tax basis can be deducted by 5% at most. If donor is VAT (DPH) payer and give material gift, it is obligatory to pay VAT from the value of the gift. Financial donations are not subjected to VAT. VAT is for donnor another expense conected with donation.

Here you can find tax calculator where you can compute your tax deduction and ideal gift value.