Tax Credits

All charitable and public benefit gifts up to the amount of a persons
annual taxable income now qualify for a tax credit amounting to
33 1/3% of the amount of the gift.

From April 2008, the cap on tax breaks for charitable donations has been
removed. Previously, no matter how much an individual donated, refunds were
limited to $630. Now you can claim a tax rebate of one-third of every dollar you
donate, up to the amount of your annual income.
For an example, an individual who gives $10,000 in any one year can now claim
back $3,333 as a tax rebate. If your donation is $1,000 your rebate will be $333.

Significantly, businesses can also claim these tax deductions. Companies can
get a deduction for total charitable donations made, limited only by the amount
of the company’s net annual income.
For example, a company could donate $30,000 in the financial year and,
provided the net income (calculated before taking into account the donation)
is above that, the company could get a full deduction of $30,000.

• Downloadable

Back...