You can apply for a deduction for charity expenses if you donated:
- charitable organizations
- socially oriented non-profit organizations (NPOs) to carry out activities provided for by the legislation of the Russian Federation on NPOs,
- non-profit organizations engaged in activities in the field of science, culture, physical education and sports (with the exception of professional sports), education, enlightenment, healthcare, protection of human and civil rights and freedoms, social and legal support and protection of citizens, assistance to protect citizens from emergency situations environmental protection and animal welfare,
- religious organizations to carry out statutory activities,
- non-profit organizations for the formation or replenishment of target capital.
3. What documents are needed?
- certificate of the amount of accrued and withheld taxes for the year in which the donation was made, in the form of 2-NDFL (requested from the employer),
- copies of payment documents (receipts for cash receipts, payment orders, bank statements, etc.),
- copy of the agreement (agreement) for donation, charitable assistance and the like. If the donation was made in kind, then it must be directly reflected in the contract indicating the market price of the transferred property (the cost of the work (services) of third parties paid by you). In addition, as an annex to the contract, there must be an act of acceptance of the donation,
- copies of documents confirming the status of the recipient organization and the purpose of the donation (for example, a copy of the constituent documents, a copy of the budget estimates, a copy of the license, in the absence of which it is impossible to carry out any activity).
4. How to apply for a deduction through tax?
You will need:
- fill out a 3-NDFL declaration (example of completion) for the period for which you want to make a deduction,
- make a statement (sample) on the return of the excessively paid tax amount.
The completed declaration, the documents required to receive the deduction, as well as the application for the return of excessively paid personal income tax must be submitted to the tax office at the place of residence. It can be done:
- at a personal reception,
- online, using the service "Personal Account of the taxpayer" on the website of the Federal Tax Service.
Within three months from the date you submit the declaration and supporting documents, the Federal Tax Service will conduct a desk audit and send you a message about the decision. If a positive decision is made, the amount of the excess tax paid should be returned to you upon completion of the desk audit (if you submitted the application for the deduction along with the declaration) or within 30 days after the application was submitted.
5. In what cases it is impossible to make a deduction on expenses for charity?
You will not be able to receive a deduction for charity expenses if:
- you donated money not directly to the organization, but to the funds it established
- charity expenses involved the receipt of any benefit by you (transfer of property, services, advertising, etc.), and not the provision of selfless help,
- You have transferred money to an individual.
The amount of social deduction for charity
Donations reduce the annual income of a Russian resident taxed by personal income tax by no more than 25%. It works like this.
Imagine that your income for 2018 is 1 million rubles. You spent 300 thousand on charity. A quarter of annual income is 250 thousand. The limit is less than the donation, which means that the deduction is 250 thousand, and the personal income tax for return is 32 500 rubles (250 000 × 13%).
Or another option. Suppose for 2018 you earned the same 1 million rubles, but donated less - 200 thousand. This is less than 25% of annual income, which means that the deduction is simply equal to the amount of expenses - 200 thousand. Personal income tax for return - 26 thousand (200,000 × 13%). Most likely, you have just such a calculation scheme, because few people can afford to transfer 25% of income or more to charity.
What documents are needed
The tax code does not have a clear list of documents that need to be attached to the personal income tax return in order to receive a deduction for charity.
But according to the latest clarifications of the Federal Tax Service, there will be enough papers to transfer money: payment cards, receipts for cash receipts, etc. It should be clear from them that a person made a donation to an organization of a certain type:
- a charity is your case
- non-profit organization that is engaged in science, culture, sports, education, healthcare, animal welfare.
The full list of recipients is in sub. 1 p. 1 Article 219 Tax Code.
The FTS emphasizes that tax inspectorates are not entitled to expand the list of documents for deduction. So, for example, it is illegal to demand the charter of the recipient organization. They can check her status themselves - according to information from the register.
You also mentioned a charity agreement. It is more correct to call it a donation agreement.
Donation of money is a special case of donation of movable property. The law requires a written donation contract only if the donor organization transfers something worth more than 3 thousand rubles.
You have the opposite case: you presented, and the charity fund accepted. This can be done without a written contract.
On the receipt of a social tax deduction in the amount of income transferred by the taxpayer in the form of donations.
From 01.01.2012 the paragraphs entered into force. 1 p. 1 Article 219 of the Tax Code of the Russian Federation.
When determining the size of the tax base, the taxpayer has the right to receive the following social tax deductions:
- in the amount of income transferred by the taxpayer in the form of donations:
non-profit organizations engaged in activities in the field of science, culture, physical education and sports (with the exception of professional sports), education, enlightenment, healthcare, protection of human and civil rights and freedoms, social and legal support and protection of citizens, assistance to protect citizens from emergency situations environmental protection and animal welfare.
The innovation gives the taxpayer the right to reduce the taxable income taxed by personal income tax at the rate of 13% on the social tax deduction in the amount of expenses transferred to him in the form of donations.
A social tax deduction is granted in the amount of actual expenses incurred, but not more than 25 percent of the amount of taxable income.
As a result, the amount of tax payable will decrease, and the overpaid tax will be returned from the budget to the donor.
Example 1: If the donor for the past tax period (year) donated 1,000 rubles, received income of 180,000 rubles, then he has the right to reduce the tax base by the amount of social deduction in the amount of 1,000 rubles, since it does not exceed 25% of his income (45 000 rub.).
In this case, the tax base will decrease to 179,000 rubles. (180 000 rub. - 1 000 rub.).
The tax in this case should be 23,270.00 rubles.
During the past tax period, the taxpayer paid 13% of annual income, which amounted to 23,400.00 rubles in total.
Thus, the taxpayer must be refunded a tax overpayment of 130.00 rubles.
Example 2: If the donor for the past tax period (year) donated 10,000 rubles, received income of 300,000 rubles, then he has the right to reduce the tax base by the amount of social deduction in the amount of 10,000 rubles, as it does not exceed 25% of his income ( 75 000 rub.).
In this case, the tax base will decrease to 290,000 rubles. (300,000 rubles - 10,000 rubles).
The tax in this case should be 37,700 rubles.
During the last tax period, the taxpayer paid 13% of the income for the year, which amounted to 39,000 rubles in total.
Thus, the taxpayer must be refunded a tax overpayment of 1300 rubles.
Example 3: If the donor donated 100,000 rubles for the past tax period (year), received income of 400,000 rubles, then he has the right to reduce the tax base by the amount of social deduction in the amount of 100,000 rubles, since it does not exceed 25% of his income ( 95 000 rub.).
In this case, the tax base will be reduced to 300,000 rubles. (400,000 rubles. - 100,000 rubles.).
The tax in this case should be 39,000 rubles.
During the past tax period, the taxpayer paid 13% of annual income, which amounted to 52,000 rubles in total.
Thus, the taxpayer must be returned a tax overpayment in the amount of 13,000.00 rubles.
A social tax deduction in the amount of income transferred by the taxpayer in the form of donations is provided regardless of other social deductions provided.
In order to receive a deduction at the end of the tax period (year), the donor must submit to the Tax Inspectorate at the place of registration a tax return and copies of documents confirming the expenses in the form of a donation (paragraph 2 of clause 1 of article 219 and article 229 of the Tax Code of the Russian Federation).
Attention: The right to receive a social tax deduction arises only from 2013, i.e. when filing a tax return for 2012.