Corporate Donations

'Corporate Donations' image

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.

Example

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.

Qualifying donations

To qualify for the tax relief a donation must satisfy a number of conditions: