Under the 2001 Finance Act, a corporate tax relief scheme is in place for companies that make donations to Epilepsy Ireland.
A company donation of greater than €250 to Epilepsy Ireland qualifies for tax relief at the current rate of corporation tax.
The donation is then treated as a deductible trading expense or as an expense of management deductible in computing the total profits of the company.
A company donates €10,000 to Epilepsy Ireland. Assuming a corporation tax rate of 12.5%, relief to the company is €1,250 i.e. €10,000 @ 12.5%. While the charity has the benefit of the full €10,000 the cost to the company of making the donation is only €8,750 (€10,000 - €1250). The normal obligations regarding the keeping of records apply.
To qualify for the tax relief a donation must satisfy a number of conditions:
- It must be in the form of money.
- It must not be repayable.
- It must not confer any benefit on the donor or any person connected with the donor.
- It must not be conditional on, or associated with, any arrangement involving the acquisition of property by the charity or approved body.