Tax deduction for charity: Who is eligible, how to get it, examples

Many citizens throughout their lives have a desire to provide selfless help to those in need. People create charities or sponsor existing ones. The state, in turn, encourages and stimulates society by developing appropriate support measures for those who help. One of them is a tax deduction for charity, which allows citizens to reimburse part of the funds spent on donations.

Tax deduction for charity: size, documents, example, deadlines

The concept of charity and legal aspects

According to Federal Law No. 135 of August 11, 1995 (as amended on December 18, 2018), charity is considered free and voluntary assistance to those in need. It can be in the form of donations, provision of services, transfer of property, and so on. The law determines the legal regulation of charitable activities, forms of its support and stimulation by the state. Such measures include tax optimization. For enterprises helping charitable organizations, VAT benefits are provided. Since 2016, such activities have been exempt from taxation if carried out for purposes specified by law.

Benefits from the state are also provided for individual philanthropists. According to Article 219 of the Tax Code of the Russian Federation, a citizen has the right to return part of the donations made.

ATTENTION! A mandatory requirement for assigning a refund is the presence of deductions from the citizen’s income to the state budget.

By paying personal income tax and making donations, a person has the right to receive a refund of up to 13% of the amount of assistance provided. The deduction for charity is considered a social deduction and is aimed at reducing the taxable portion of income.

Video - What is a charitable deduction?

The concept of charity

The concept of charitable activity is contained in Federal Law No. 135-FZ and is understood as providing “disinterested (free of charge or on preferential terms)” assistance to those who need it.

Assistance can be provided in the form of a voluntary “transfer of property, including funds, to citizens or legal entities, disinterested performance of work, provision of services, and provision of other support.” In addition, voluntary donations are permitted by Article 582 of the Civil Code of the Russian Federation.

Who is entitled to a tax deduction for charity?

A reduction in personal income tax for a benefactor is permitted when providing selfless support to socially oriented structures.

Table. List of organizations to which donations entitle you to benefits

Organizations	Peculiarities
Charitable	Must be officially registered as legal entities. For charitable support of representative offices and divisions of Russian organizations and funds created by them, no deduction is assigned.
Non-profit socially oriented structures	Donations are made for the type of activity established by Federal Law No. 7 of 01/12/1996 (with innovations that entered into force on 01/01/2019)
Non-profit organizations working in the educational, scientific, cultural, health and environmental spheres, the field of physical education and sports, protection and support of civil rights	The list does not include enterprises operating in the field of professional sports
Religious organizations	Charitable support is taken into account in the statutory functions, which must be indicated in the payment documentation
Non-profit structures	Assistance is allowed for the formation and increase of their target funds (the procedure is prescribed in Chapter 2 of Federal Law No. 275 of December 30, 2006)

ATTENTION! It should be understood that the deduction will be denied when providing charitable support to citizens (individuals) or organizations that are not officially registered legal entities or not included in the presented list.

Income tax

Current tax legislation requires organizations engaged in charitable activities to provide assistance to those in need only from net profits. In this regard, organizations are not exempt from paying income tax on amounts that were allocated to charity.

So, by virtue of paragraphs. 16 and 34 art. 270 of the Tax Code of the Russian Federation, when determining the tax base, expenses “in the form of the cost of gratuitously transferred property (work, services, property rights) and expenses associated with such transfer”, as well as “targeted deductions made by the taxpayer for the maintenance and management of non-profit organizations statutory activities."

The Ministry of Finance of the Russian Federation believes that expenses incurred by an organization as part of charitable activities do not meet the requirements of Art. 252 of the Tax Code of the Russian Federation and, therefore, cannot reduce the tax base for income tax (see Letter dated April 16, 2010 No. 03-03-06/4/42, Letter dated April 4, 2007 No. 03-03- 06/4/40). However, regional authorities, if desired, can reduce the tax rates at which the charitable foundation is taxed. This right is given to them by Article 284 of the Tax Code of the Russian Federation, according to which the legislative authorities of the constituent entities of the Russian Federation are given the right to reduce income tax rates in the part subject to credit to the regional budget (up to 13.5%) for certain categories of taxpayers.

Amount and calculation of compensation

The citizen is reimbursed 13% of charity expenses if the conditions established by the legislation of the Russian Federation are met.

Tax deductions are calculated according to schemes similar to other types of deductions.

To determine the amount of possible compensation, you need to know the person’s income and the amount of deductions made from it to the state and for gratuitous support to those in need. When calculating, data for the calendar year is taken into account.

Conditions for calculating benefits:

the refund must not exceed the amount of the transferred tax;
The amount to be reimbursed is not calculated in excess of 25% of income for the year.

It should be noted that the 25% limit is assumed not for each type of charitable support, but for their totality.

Example 1

In 2021, a citizen transferred 20 thousand rubles for charitable purposes. His income for the year is 250 thousand rubles. Since the amount of transfers is not higher than 25% of this amount (250 thousand * 25% = 62,500 rubles), the tax deduction for charity issued by a citizen in 2021 is 2,600 rubles (20 thousand * 13%).

Example 2

In 2021, a person donated 100 thousand rubles to a charitable organization. His income for the year is 300 thousand rubles. Since the amount of support is higher than 25% of the specified amount (300 thousand * 25% = 75 thousand rubles), a citizen cannot apply for full coverage. The maximum possible amount is 75 thousand rubles. In 2021, the citizen will receive compensation: 75 thousand * 13% = 9750 rubles.

Example 3

In 2021, a person donated 40 thousand rubles to charitable purposes to protect nature and 70 thousand rubles to protect health. His annual income is 320 thousand rubles. Since the total amount of assistance (110 thousand rubles) is higher than 25% of income (80 thousand rubles), a citizen cannot apply for full coverage. In 2021, he will receive a deduction of 80 thousand rubles, hence the compensation will be 10,400 rubles (80 thousand * 13%).

ATTENTION! If funds for charitable purposes for which a refund was made are returned to the benefactor, the amount of the deduction must be entered in the 3-NDFL declaration for the year in which the return was recorded.

Example 4

In 2021, a citizen donated 50 thousand rubles to charity. In 2021, he received a full tax refund (50 thousand * 13% = 6500 rubles). But this same year the funds were returned. Now, in 2021, a citizen must add the amount of compensation to his income (50 thousand) and return personal income tax (6,500 rubles).

According to Article 219 of the Tax Code, at the level of constituent entities of the Russian Federation it is possible to increase the maximum deduction amount to 30% of taxable income. Donations are aimed at supporting cultural institutions and non-profit structures. The list of such organizations is established by the law of the subject of the Russian Federation.

What kind of donation can I get a deduction for?

Remember: not all charitable activities qualify for tax relief. You can receive a deduction only if you transferred money to an organization from the list specified in clause 1 of Art. 219 Tax Code of the Russian Federation:

Charity organisations.
Socially oriented non-profit organizations.
Non-profit organizations operating in the field of science, culture, physical culture and sports (except for professional sports), education, enlightenment, healthcare, protection of human and civil rights and freedoms, social and legal support and protection of citizens, assistance in protecting citizens from emergency situations , environmental protection and animal welfare.
Religious organizations for the implementation of statutory activities.
Non-profit organizations for the formation or replenishment of target capital.

Example:

In 2021, you donated money to a children's charity. In 2021, you can generate a 3-NDFL declaration, contact the Federal Tax Service and receive a tax deduction for charity.

Example:

You transferred money to a private account opened to raise funds for the treatment of a child. Unfortunately, you are not entitled to a tax deduction for such a donation, since you provided charitable assistance to an individual. You should have sent the money to the charity that is organizing the treatment of this child.

Example:

You sent money to a non-profit sports organization where your child practices rhythmic gymnastics. Next year you are eligible to claim a tax deduction for charity.

Example:

You made a charitable donation to the city hockey club. Unfortunately, you cannot claim a tax deduction, since, according to Art. 219 of the Tax Code of the Russian Federation, the tax benefit does not apply to donations to non-profit professional sports organizations.

Place your order and we will fill out the 3-NDFL declaration for you!

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Is it possible to deduct a donation in kind (non-cash)?

Until 2012, it was possible to exercise the right to a personal income tax refund only with monetary assistance, that is, taking a refund when providing charitable support in kind before 2012 is unacceptable. This is indicated by the letter of the Ministry of Finance of the Russian Federation dated March 2, 2010 No. 03-04-05/8-78. However, currently the legislation does not impose restrictions on forms of support. In 2021, it can be both money and property (equipment, car, securities, premises). The Civil Code of the Russian Federation defines a donation as the transfer of a thing or right as a gift, without specifying a specific form.

The possibility of a deduction in 2021 for non-monetary charitable support is also indicated by Article 219 of the Tax Code of the Russian Federation. The Ministry of Finance of the Russian Federation does not consider donations in kind to be an obstacle to granting benefits, which is confirmed by letter No. 03-04-08/58234 dated December 30, 2013.

Letter of the Ministry of Finance of Russia No. 03-04-08/58234

ATTENTION! If a citizen paid for the property and donated it next year, the right to the benefit is acquired in the year the property is transferred. This is reflected in the letter of the Federal Tax Service of the Russian Federation dated May 21, 2015 No. BS-4-11/8662. For example, a person purchased property in 2021, and transferred it for a charitable purpose in 2021. Compensation can be received for 2021.

Example . In 2021, a citizen bought and donated 3 laptops to a charity organization. The market value of each is 10 thousand, respectively, the full assistance is valued at 30 thousand rubles. A citizen’s annual income is 400 thousand rubles. Since 25% of this indicator (400 thousand * 25% = 100 thousand) is higher than the cost of equipment (30 thousand), compensation is calculated: 30 thousand * 13% = 3900 rubles. A person has the right to submit documents for it in 2021.

VAT benefits

But there is a benefit for philanthropists when paying VAT.

By virtue of paragraphs. 12 clause 3 art. 149 of the Tax Code of the Russian Federation, the gratuitous transfer of goods, works, services, property rights within the framework of charitable activities has been exempt from VAT since 2016. The main condition is that such activities must be carried out in accordance with Federal Law No. 135-FZ and not concern excisable goods.

In order to be able to apply the preferential VAT taxation of charitable donations, certain conditions must be met. As mentioned above, the main one is the provision of charitable assistance only for purposes specified by law.

Let’s say a construction organization carried out work on a free of charge basis to repair a school building and purchase the materials necessary for the repair. These works are exempt from VAT (see Letter of the Ministry of Finance of Russia dated May 10, 2012 N 03-07-07/49). Also, the presentation by the company of gifts to employees retiring relates to business transactions that pursue a goal such as “social support and protection of citizens, including improving the financial situation of the poor,” and are exempt from VAT (see Resolution of the Federal Antimonopoly Service dated July 4, 2012 N A14-2540/2011).

The free transfer of children's gifts to employees of an enterprise for their children in order to promote and strengthen family values, show concern for the younger generation, and promote the protection of motherhood, childhood and paternity is charitable assistance; preferential taxation is applied: the organization is exempt from VAT, since these actions cannot be characterized as the transfer of goods for the taxpayer’s own needs or as an operation for the sale of goods. (see Resolution of the Federal Antimonopoly Service of the Moscow Region dated 04/06/2009 N KA-A40/2403-09).

In addition to meeting its objectives, an organization that engages in charitable activities must document such transactions to qualify for the benefit. An approximate list of documents on the basis of which this can be done was provided by the Ministry of Finance of Russia in letter dated October 26, 2011 No. 03-07-07/66. Tax authorities, assessing the legitimacy of an organization’s claim to preferential taxation of sponsorship assistance, will take into account the following documents:

an agreement with the recipient of charitable assistance for the free transfer of goods, performance of work, provision of services as part of charitable activities;
copies of documents confirming the registration of the specified goods, works, and services by the recipient of charitable assistance;
documents indicating the intended use of goods (work, services) received as part of charitable activities.

If an individual receives charitable assistance, it is sufficient to submit a document confirming the actual free receipt by the citizen of goods, works or services (see letter of the Federal Tax Service of Russia for Moscow dated December 2, 2009 No. 16-15/126825, letter of the Ministry of Finance of Russia dated October 26, 2011 No. 03-07-07/66).

If donations (not necessarily charitable) are made only in cash to non-profit organizations for the implementation of statutory activities not related to entrepreneurship, or to individuals, then there is no need to collect a package of documents at all. Moreover, in this case one should not claim a charitable benefit. The gratuitous transfer of funds in the form of a donation is not recognized as the sale of goods, works, services and, accordingly, is not subject to VAT from the transferring party on other grounds (clause 3 of Article 39, subclause 1 of clause 2 of Article 146 of the Tax Code of the Russian Federation). This position is also confirmed by decisions of arbitration courts (see resolution of the FAS Moscow Region dated January 26, 2009 No. KA-A40/13294-08, FAS PO dated January 26, 2009 No. A55-9610/2008).

And finally, if a benefactor carries out transactions both subject to VAT and exempt from taxation, he is obliged to keep separate records of them (Clause 4 of Article 149 of the Tax Code of the Russian Federation). In this case, the taxpayer develops the procedure for separate accounting of transactions independently and discloses it in the accounting policy.

So, a taxpayer-philanthropist has the right to apply an exemption from VAT on transactions carried out within the framework of charitable activities only if he complies with the above conditions.

Procedure for filing a deduction

Reimbursement for expenses for charitable purposes is made only for the period during which support for organizations was provided. The declaration is completed in the year following the year in which the assistance was provided: for example, for donations made in 2021, the benefit is assigned in 2021. Later registration is possible, but no more than for the previous 3 years. For example, gratuitous payments were made in 2014-2018, but the benefit was announced only in 2019 - tax refunds are possible for 2016-2018. There is no deduction for 2014 and 2015. If the donation was made in 2012, 2014, 2018, and the intention to use the benefit was reported only in 2019, it is available to take only for 2021. For other years, no deduction is issued, since more than 3 years have passed.

ATTENTION! If the amount of compensation for charitable expenses in the current year is not fully spent, the balance is not carried forward to a future period.

For example, a citizen transferred 30 thousand rubles to charity. His income for the year is 100 thousand rubles. Since the amount of assistance is more than 25% of income for the year (100 thousand * 25% = 25 thousand), the deduction will be 25 thousand * 13% = 3250 rubles. The balance of 30 thousand - 25 thousand = 5 thousand cannot be transferred to a future period.

The registration procedure usually takes about 4 months, most of which is spent checking the data provided by the citizen. If approved, the funds are transferred to the account specified by the recipient.

Where to contact?

The deduction is issued through the tax office at the place of registration of the citizen. Reimbursement is not assigned through the employer (clause 2 of Article 219 of the Tax Code).

Correctly completed documentation, including a tax return, must be sent to the Federal Tax Service. It is allowed to do this by mail (registered letter with an inventory), in person or via the Internet (through the taxpayer’s account on the Federal Tax Service resource). No application required.

List of documents

To assign a deduction to the Federal Tax Service, you need to send a package of documentation, which includes:

declaration 3-NDFL;
passport (copy). It is possible to provide another identification document;
data on income and contributions to the state budget. Information is provided by the employer using a special form. If during a period a citizen worked in several places, data is provided from all enterprises.

Certificate of income 2-NDFL

copies of confirmations of donations made. These are bills, receipts, bank statements, and so on.
copies of the contract, agreement for the provision of charitable support.

ATTENTION! If a citizen provided assistance in non-monetary form, it is important to reflect this in the documentation with a note on the value (according to the market) of the transferred property or services provided by a third party. In this case, an act of acceptance and transfer of assistance must be attached to the agreement.

copies of documentation indicating the status of the recipient and the purpose of the assistance provided (founding papers, estimates, license to operate). There are no official mandatory requirements for providing such information to the Federal Tax Service, but in practice this allows you to speed up the procedure for assigning benefits and avoid questions from inspectors.

All papers are issued in the name of the applicant, their purpose is to show that it was he who incurred the costs of the charity. Tax authorities have the right to request additional documentation for control purposes.

If a third party made donations on behalf of the applicant, it is important to prove that they acted on behalf of the applicant. To do this, provide a notarized power of attorney, which is executed before sending a payment or providing other charitable assistance (Article 185 of the Civil Code of the Russian Federation).

Spouses have the right to receive benefits for each other, regardless of who made the donation and for whom the papers confirming the expenses were issued. In this case, no additional evidence or powers of attorney are required (letter of the Federal Tax Service of the Russian Federation dated October 1, 2015 No. BS-4-11/17171).

Letter No. BS-4-11/17171

Sample of filling out the 3-NDFL declaration on charity expenses

Proper execution of documents helps speed up the process of assigning benefits. You can fill out the declaration yourself or use the services of professionals (accountants, lawyers). The form can be obtained from the Federal Tax Service, but it is more convenient to download it from their official website. When visiting the Federal Tax Service in person to submit documents for deduction, it is recommended that the declaration is already filled out; this will significantly reduce the time of the registration procedure. To fill out the document yourself, it is advisable to use the provided sample.

Sample of filling out 3-NDFL for charity. Page 1

Sample of filling out 3-NDFL for charity. Page 2

Sample of filling out 3-NDFL for charity. Page 3

Sample of filling out 3-NDFL for charity. Page 4

Sample of filling out 3-NDFL for charity. Page 5

Sample of filling out 3-NDFL for charity. Page 6

Sample of filling out 3-NDFL for charity. Page 7

Sample of filling out 3-NDFL for charity. Page 8

more about filling out a tax return in a special article on our website.

The state encourages and stimulates charitable activities in order to support organizations working in various fields: cultural, scientific, health, nature, animals, and so on. People who selflessly perform good deeds are offered a reward in the form of a partial refund of the funds they spent helping those in need.

Procedure for applying tax deduction for charity

is prescribed in paragraphs.
1 clause 1 art. 219 “Social tax deductions” of the Tax Code of the Russian Federation (part two) dated 08/05/2000 No. 117-FZ (as amended on 02/15/2016). According to this article of the Tax Code of the Russian Federation, if you donated money from your official income to charity,

then you can take advantage of the right to a tax deduction or, more simply put, get back part of the donated money.

As you already know from my material “What is a tax deduction: Who can get it and how”, a tax deduction is a part of income that is not taxed.

Therefore, you can get a tax refund on your donations. That is, if you officially work and, accordingly, pay personal income tax (personal income tax) and incur expenses for charity, then you can get back part of the money spent in the amount of up to 13% of the donation amount.

What happens that you can donate any money for any need and then reimburse the costs by simply defining all transfers as charity?

No. The Tax Code clearly states where exactly you can transfer charitable amounts if you are counting on a tax deduction for charity in the future.

In what cases can you get a tax deduction for charity?

In the above paragraph 1 of Art. 219 “Social tax deductions” of the Tax Code of the Russian Federation defines organizations that can receive a tax deduction when providing charitable assistance.

These include:

officially registered charities;
socially oriented non-profit structures;
non-profit organizations engaged in scientific, cultural, physical education and sports activities, as well as education and awareness;
Priority is also given to organizations involved in social and legal protection and support of the population, environmental protection and animal protection;
religious organizations, if donations are transferred to their main statutory activities;
non-profit structures for the formation or replenishment of their target funds.

Examples of obtaining a tax deduction for charity

Example 1. In 2015, citizen T. provided financial assistance to a charitable organization for the treatment of children. At the end of the year, she filed a declaration in Form 3-NDFL with the tax office and received a tax deduction for charity.

Example 2. In 2015, citizen P. made a monetary donation to a religious organization for statutory purposes. At the end of the year, he filed a 3-NDFL declaration with the tax office and received a tax deduction for charity.

Example 3. Citizen K. provided charitable assistance to a city football club. According to paragraph 1 of Art. 219 of the Tax Code of the Russian Federation, when providing charitable assistance to non-profit organizations of professional sports, a tax deduction cannot be claimed, so she was not able to exercise the right of a tax deduction.

Example 4. Citizen D. donated money to the non-profit organization “Development of Science and Education” and to a low-income individual. He can claim a tax deduction for charity only in the amount of a donation to the non-profit organization “Development of Science and Education,” since a tax deduction is not provided when donating to another person.

Amount of tax deduction for charity

The amount of tax deduction for charitable expenses is calculated for the calendar year and is determined by the following factors:

you cannot return in the form of a tax deduction more money than was transferred to the income tax budget (about 13% of the official payment);
you can return up to 13% of expenses for charity, but the maximum amount of expenses that can be used for tax deduction is limited to 25% of annual income (paragraph 7, paragraph 1, clause 1, article 219 of the Tax Code of the Russian Federation). Accordingly, the maximum tax refund amount is
13% x 25% x Annual income;
the limit of 25% of income received is not applied to each type of expenditure on charity and donations, but to all in total for the year.

Example 5. In 2015, citizen I. donated 30 thousand rubles to a children's city hospital, while his taxable income for the year will be 200 thousand rubles. Since the donation amount does not exceed 25% of the income (30,000 < 200,000 x 25%), he has the right to claim a tax deduction in the amount of the donation. In 2021, citizen I. can submit a declaration to the tax authority and return 30,000 x 13% = 3,900 rubles.

Example 6. In 2015, citizen L. donated money to the Children charity organization in the amount of 70,000 rubles. Taxable income for the year amounted to 250,000 rubles. Since the donation amount exceeds 25% of the annual income (RUB 70,000 > RUB 250,000 x 25%), a tax deduction can only be claimed in the amount of RUB 250,000 x 25% = RUB 62,500. In 2021, citizen L. has the right to submit a declaration to the tax office and return 62,500 x 13% = 8,125 rubles.

Example 7. In 2015, citizen F. donated 50,000 rubles to a non-profit organization for the protection of nature. and 80,000 rub. for the benefit of a charitable organization. The annual taxable income for the year of citizen F. amounted to 360,000 rubles. The total amount of donations exceeds 25% of income for the year (50,000 + 80,000 > 360,000 x 25%). Therefore, at the end of 2015, citizen F. was able to claim a tax deduction in the amount of 90,000 rubles. (360,000 x 25%) and return tax in the amount of 90,000 x 13% = 11,700 rubles.

Attention. If for some reason the donation for which a tax deduction was received is returned, then the amount of the tax deduction must be included in the tax return for the period when the return was made (paragraph 8, paragraph 1, clause 1, article 219 of the Tax Code of the Russian Federation) .

Example 8. In 2014, citizen V. donated 40,000 rubles to a religious organization. In 2015, he filed a return with the tax office and received a tax deduction for charitable expenses in full (he returned a tax of 40,000 x 13% = 5,200 rubles).

However, the donation was later returned in 2015. At the end of 2015, Citizen V. had to submit a declaration to the tax office at the place of permanent registration and include the amount of the tax deduction of 40,000 rubles. to your income, as well as return a tax in the amount of 13% of the tax deduction amount (5,200 rubles).

Is it possible to get a tax deduction for charity if the charity was not provided with money?

According to experts, a donation is recognized as the donation of a thing or right for generally beneficial purposes (Part 1 of Article 582 of the Civil Code of the Russian Federation). The concept of a thing includes money, securities, and other property, including property rights (Article 128 of the Civil Code of the Russian Federation).

Accordingly, a donation can be made either by transferring money or by transferring any property (car, office equipment, etc.). Moreover, since the Tax Code of the Russian Federation does not limit the right to a social deduction (and a tax deduction for charity is a type of social deduction), only in the form of a monetary donation, a tax deduction for charity can also be obtained when providing assistance with property.

Letter of the Ministry of Finance of Russia dated December 30, 2013 No. 03-04-08/58234.

What documents are needed to apply for a tax deduction for charity?

To apply for a tax deduction for charity you will need:

identification document;
declaration 3-NDFL and application for tax refund;
documents confirming your expenses for charity;
documents confirming the paid income tax (certificate 2-NDFL).

When do you need to submit documents and for what period can you receive a tax deduction for charity?

Charitable expenses can only be refunded for the years in which the expenses were directly incurred.

However, you can file a tax return and return the money only in the year following the year of charitable expenses. That is, if the donation was made in 2015, then the money can be returned only in 2021.

If the tax deduction was not issued immediately, then this can be done later, but no more than for the last three years.

For example, if charitable assistance was provided in 2011-2014 and a tax deduction was not received, then in 2015 you can return the tax only for 2012, 2013, 2014 (the tax refund period for 2011 has already passed).

Example 9. In 2011 and 2014, citizen S. made a monetary donation to a charitable organization for the education of orphans. If a 3-NDFL declaration is submitted to the tax office in 2015, he can receive a tax deduction only for charity expenses for 2014. For 2011, the tax deduction will remain unused, since more than 3 years have passed.

The entire procedure for obtaining a tax deduction usually takes from two to four months (most of the time is spent checking documents by the tax office).

Attention. If the tax deduction for charitable expenses was not used in full in the current year, then it will not be possible to carry over the remainder to the next year. It will never be used.

Letter of the Federal Tax Service of Russia dated August 16, 2012 No. ED-4-3/13603.

Example 10. In 2015, citizen S. donated 20,000 rubles to an animal protection fund. His taxable income for the year will be 30,000 rubles, and the income tax paid will be 3,900 rubles.

Since the donation amount exceeds 25% of citizen S.’s income (20,000 > 30,000 x 25%), he can claim a tax deduction of 30,000 x 25% = 7,500 rubles.

In 2021, he can submit a tax return to the tax authority and return 7500 x 13% = 975 rubles. Balance of 20,000 – 7,500 = 12,500 rubles. Citizen S. cannot receive additional funds during other periods.

If you have any questions about the violation of your rights, or you find yourself in a difficult life situation, then an online duty lawyer is ready to advise you on this issue for free.

TAXES AND TAX DEDUCTIONS

Deadlines for receiving reimbursement

The deduction can be applied for within 3 years from the date of payment of personal income tax for the period of time in which the funds were donated. A tax return can be submitted to the Federal Tax Service in the year that follows the year of expenses incurred. If a citizen performed a good deed in 2021, he will be able to claim a refund in 2021.

When an individual carried out charitable activities in 2014-2017 and did not apply for compensation, in 2018 he returned the money only for 2015, 2021, 2021. The deadline for paying compensation for 2014 has expired.

Example

Pirogova donated a sum of money to a children's charity in 2014 and 2021. She contacted the tax service in 2018 and the state issued a refund for 2021. The tax return for 2014 is no longer due, since more than 3 years have passed.

Important! If the social deduction associated with the implementation of charitable activities in the current year is not completely exhausted, it cannot be transferred to the next balance.

Example

In 2021, Popov sent a donation to an organization involved in the protection of wild animals in the amount of 20,000 rubles. For the year he received taxable income of 30,000 rubles. Personal income tax – 3900 rubles. Since the donations exceed Popov's annual income by 25%, he can claim a refund of 7,500 rubles (30,000 times 25%). In 2021, Popov submitted a declaration and returned 975 rubles (7,500 times 13%). The remaining money - 12,500 rubles (20,000 minus 7,500) cannot be returned.

What expenses are considered charitable?

How to do this, what documents are needed, what amount of refund can I expect? Is sponsorship received from an organization or individual taxable? Let's deal with these questions.

Social deduction for charitable expenses is a tax deduction that reduces the tax base.

A deduction for charitable expenses is provided in cases where the transfer of funds was made directly to organizations, the list of which is defined by the Tax Code, and the charitable expenses did not imply that the individual would receive any benefit.

Also, the amount of social deduction for charitable purposes cannot exceed 25% of the income received by an individual for the year. For example, if an individual donates to a charitable organization an amount that is 30% of the income received for the year, then the deduction in this case will be 25%.

The right to a personal income tax refund in connection with receiving a deduction is retained by an individual for 3 years from the date of personal income tax payment based on the results of the year in which the charity expenses were incurred. In other words, if an individual claims the deduction in 2019, charitable donations made between 2021 and 2021 will be counted.

To receive a deduction for charitable expenses, an individual can file a return with the tax authority at any time during the year. If an individual is part of a group of persons required to independently declare their income, then the deadline for filing a declaration is April 30 of the current year.

To receive a social tax deduction for charitable expenses, an individual must complete the following steps:

Fill out a tax return (form 3-NDFL) at the end of the year in which funds were transferred to charity;
Receive a certificate from the accounting department at the place of work on the amounts of accrued and withheld taxes for the corresponding year in form 2-NDFL;
Prepare copies of documents confirming the taxpayer's transfer of funds to charity (for example, payment orders, bank statements, donation agreements, charitable assistance, etc.);
Provide the tax authority at your place of residence with a completed tax return with copies of documents confirming the transfer of funds for charitable purposes.

When submitting copies of documents confirming the right to deduction to the tax authority, you must have their originals with you for verification by a tax inspector.

You can receive a personal income tax refund for charity on expenses in the form of material assistance provided:

charitable organizations;
NGOs dealing with the social needs of the population;
NGOs working in the field of culture, healthcare, education, protection of citizens' rights, ecology;
religious associations.

Art. 219 of the Tax Code regulates the procedure for obtaining a tax deduction for charity by individuals. It will not be possible to receive a refund if the funds were transferred in favor of another private person, the assistance was provided on a reimbursable basis, or the money was sent to a fund established by the organization and not directly.

To registered charities and foundations.
For non-profit organizations with socially oriented activities.
Religious organizations and associations (conducting statutory activities).
To form or replenish the authorized capital of non-profit organizations.
To conduct the activities of non-profit structures in the field of education, science, healthcare, physical education, and protection of citizens' rights.

Amount to be refunded

In the Tax Code of the Russian Federation, Article 219, paragraph 1, specifies the amount of the deduction. It is provided in proportion to the costs incurred, but has some restrictions:

No more than 25% of the income on which a person pays personal income tax.
The amount of preference should not exceed the amount of income tax.

Calculation examples

Example

For 2021, Ogurtsov received an income of 400,000 rubles. At work, personal income tax was withheld from his salary in the amount of 52,000 rubles at a tax rate of 13%. Income tax amounted to 52,000 rubles: 400,000 multiplied by 13%. Ogurtsov transferred 130,000 rubles to charitable needs during the year. At the beginning of 2021, he contacted the local tax authority and submitted a declaration, a complete set of documents for processing a tax deduction for charity. The maximum deduction level is 25% of the income received: 400,000 x 25% = 100,000. The 130,000 rubles that Ogurtsov donated to good causes is more than the amount established by law. The Federal Tax Service will calculate the refund, taking into account donations, based on 300,000 rubles. As a result, personal income tax will be 39,000 rubles (from 400,000 we subtract 100,000 and multiply by 13%).

Since the employer deducted 52,000 rubles from Ogurtsov’s earnings last year, the amount payable will be 13,000 rubles (52,000 – 39,000).

Example

Denisov helped the kindergarten by donating 80,000 rubles. The annual income of a citizen is 230,000 rubles. The amount transferred to the kindergarten is more than 25% of taxable income. Denisov will receive a deduction of 57,500 rubles (230,000 multiplied by 25% and divided by 100). The amount of compensation is 7,475 rubles (57,500 multiplied by 13%).

Package of documents and procedure

To receive deductions for charity, Dobronravov will need the following documents:

• passport; • form 3-NDFL; • certificate 2-NDFL; • payment documents confirming the fact of donations (checks, receipts, receipts, etc.); • documents to confirm the status of the organization (charter, etc.); • application for a refund of overpaid tax.

At the end of the tax period, Dmitry will submit this package of documents by mail or in person to the tax office, where a desk audit will take place within 3 months. As a result, the authorities will decide whether to grant a deduction. Since Dmitry submitted an application for a refund immediately, within 30 days after approval of the results of the audit, part of the personal income tax for charity will be returned to him.

Who has the right to a personal income tax refund?

Tax deductions for charity are provided to individuals subject to a number of conditions:

Russian citizenship.
Russian Federation resident status (residence in the country for at least 183 days a year).
Availability of official work and income, from which 13% is transferred to the state budget.
Donations are sent only to socially oriented legal entities.

Example

Razina donated the amount for the treatment of children to a charity organization in 2021. At the end of the tax period, she has the right to contact the fiscal authorities and apply for an income tax refund.

Pensioners and persons who had taxable income more than 3 years ago are not entitled to receive a preference from the state. Deductions are not allowed for charitable assistance provided to a specific individual without the participation of a charitable organization.

A citizen will not be able to take advantage of the tax benefit in other cases:

The donation amount was transferred not directly to an institution included in the list established by the Tax Code of the Russian Federation, but to a fund formed by this organization.
The benefit involved the benefit of an individual (advertising, services, etc.) and was not performed disinterestedly.
Support for campaigning campaigns and political parties.
Providing assistance to organizations that are not registered or are engaged in supporting professional sports.

Example

Bochkin donated building materials to the religious organization to carry out work on the restoration of the temple. The Federal Tax Service refused to accept the documents.

Example

Belikova applied to the tax authority for a social deduction regarding the non-profit organization “Kindergarten”. Belikova presented payment documents marked “voluntary donation.” The Federal Tax Service refused.

How to return honestly earned 13% personal income tax: deduction for charity

Legislation allows you to return paid charity tax in Russia. In this case, a tax is understood as a mandatory individual gratuitous payment made to the budget. The benefit can only be used by a taxpayer who paid personal income tax in the same year in which he was engaged in patronage.

How to exercise this right? Here are some required steps:

Fill out the 3-NDFL declaration for the period in which the expenses were made for charitable purposes;
Take a 2-NDFL extract from your place of employment confirming tax deductions and their amount;
Prepare documents about expenses: payment orders, checks, donation agreements, where the transferred amounts are indicated;
Submit the package of documents to the Federal Tax Service, and then wait for a decision to be made; this procedure may take up to 4 months.

We invite you to read: Circumstances mitigating administrative liability

Accordingly, tax exemption for charity is available only in an amount not exceeding the amount of personal income tax paid by a citizen to the budget; it cannot be more than 25% of earnings.

Our state encourages the activities of philanthropists by providing the opportunity to reimburse some of their expenses for charity.

For the purpose of state support for the activity of Russians in the field of donations, the Tax Code of the Russian Federation provides for the possibility of obtaining deductions for such expenses for citizens paying income tax at a rate of 13%. MoneyMan has collected materials that you need to familiarize yourself with before heading to the tax office.

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Dmitry Dobronravov believes that it is the duty of every citizen to help those who need it, and therefore annually sends money to charitable organizations. In 2014, he donated 90 thousand rubles. to the Gift of Life fund and 120 thousand rubles. Victoria Foundation in 2015. Since Dmitry pays personal income tax, and his taxable annual income is 420 thousand rubles, he hopes to receive a deduction. Let's figure out how much money Dobronravov will be able to return.

• charitable organizations; • non-profit socially oriented organizations; • non-profit organizations operating in the field of culture, science, sports, healthcare, education, emergency protection, legal support for citizens, animal and nature protection; • non-profit organizations aimed at creating and replenishing the target capital;• religious organizations.

Since both organizations to which Dobronravov sent money are charities, the taxpayer has the right to receive a deduction for donations in both 2014 and 2015.

Legal status

In order for expenses to be accepted for deduction, it is necessary that the organizations to which the funds were sent legally comply with the format of non-profit, religious and charitable organizations.

Suppose a citizen donated 100 thousand rubles to a local animal shelter. But it turned out that the shelter was not registered, but was supported by the owners, who informally announced a collection of donations, accepting funds from their personal accounts.

In this case, the taxpayer will not be able to receive a deduction.

The deduction for donations is not subject to the 120 thousand rubles rule. and is calculated separately from other social deductions. It is provided in the full amount of funds spent on charity, but not more than 25% of the annual taxable income.

25% of Dobronravov’s annual income is 105 thousand rubles. (420 thousand rubles × 25%), therefore, to determine the deduction, he will be guided by this limit.

As for the 2015 donation, the deduction will be 105 thousand rubles, since 120 thousand rubles. for the Victoria fund exceed 25% of Dobronravov’s annual income. The amount to be reimbursed will be 13,650 rubles. (RUB 105 thousand × 13%).

The maximum 25% of taxable income is for the entire tax period, not for each donation. It turns out that if in 2014 Dobronravov sent 90 thousand rubles. in “Give Life” and in the same period another 30 thousand rubles. donated to an orphanage, then the total amount of deduction for all charitable expenses would be 105 thousand rubles. So, for helping the fund the deduction will be 90 thousand rubles, and the remaining 15,000 rubles. (105 thousand - 90 thousand rubles) will be counted as donations to the orphanage.

In a situation where the donation amount turns out to be more than 25% of taxable income, the remaining difference between them is not carried forward for deduction to subsequent tax periods.

In 2015, Dmitry received a deduction in the amount of a limit limited to 25% of his income (105 thousand rubles). However, the donation turned out to be 15 thousand rubles more than the limit. (120 thousand rubles - 105 thousand rubles), but Dobronravov will not be able to use this amount for deductions in 2016 and subsequent years.

When returning the donation amount, the taxpayer must return the refund received. Thus, the amount of the deduction will need to be included in the tax base in the year in which the funds were returned, and an income tax of 13% will be paid.

Let's say that in 2015, the Gift of Life foundation returned to Dobronravov the entire amount of the donation (90 thousand rubles), which he sent in 2014 and for which he received a deduction. Since Dmitry had already returned part of the tax for 2014, at the end of 2015 he indicated the 90 thousand deductions he received as income in his declaration.

The deduction is provided at the end of the tax period in which the donations were made. That is, you need to contact the inspectorate at the beginning of the year following the year in which the taxpayer was engaged in charity.

The taxpayer received a deduction for the donation to Give Life, which Dobronravov sent in 2014, in 2015. And regarding compensation for assistance to the Victoria Fund in 2015, Dmitry contacted the inspectorate in 2021.

Another nuance: a deduction is provided only for the previous 3 tax periods. For example, a citizen donated money to charitable organizations in 2011 and 2014, but only learned about the deductions in 2021. According to the rule, he can return part of the tax only for the previous 3 years: 2015, 2014, 2013. Therefore, the taxpayer will not receive a deduction for 2011, but he has every right to return part of the money for donations in 2014.

• passport;• form 3-NDFL;• certificate 2-NDFL;• payment documents confirming the fact of donations (checks, receipts, receipts, etc.);• documents to confirm the status of the organization (charter, etc.);• application for a refund of overpaid tax.