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Charity Tax Back Scheme
Charity Tax Back Scheme (aka Charitable Donation Scheme) introduced by Revenue in 2013 allows for tax relief on qualifying donations made to eligible charities and approved bodies.
If a person makes a donation of €250 or over in a calendar year, the charity or approved body can claim a refund of the tax paid by the donor on the donation. There is a four year timeframe claim limit under the scheme.
Charities must be authorised in writing by Revenue for the Charity Tax Back Scheme.
Approved bodies include primary, second and third level institutions who have programmes approved by the Minister for Education and Skills.
There are also a list of other approved bodies.
A donation (or donations) of at least €250 made in a single year will qualify under the Charitable Donation Scheme.
Who can claim the relief?
When a person makes a donation, the charity or approved body claims the tax relief. To allow the charity to claim the relief the donor must complete one of the following forms and give it to the charity :
– an Enduring Certificate – CHY3 Cert
– an Annual Certificate – CHY4 Cert
If you allow the charity to claim the relief, you will not be able to claim a refund of the same tax yourself.
Calculating the relief on donations from individuals
How does a charity claim the relief?
Eligible charities and approved bodies who wish to claim the relief under the Charity Tax Back Scheme must complete their claim through our Revenue Online Service (ROS).
The donor details and amounts that are submitted by the organisation, must match the Enduring or Annual Certificate.
The rate of tax relief for charities is no longer related to the actual rate of tax the donor pays. It is a blended rate of 31% for all donors.
The gross donation is 100% / (100% – 31%) = 144.93% of the net donation, so the tax relief works out as 44.93% of the net donation.
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