As a general rule, donations are not deductible from the income of taxpayers in arriving at their taxable profits. Nonetheless certain exceptions apply by operation of specific rules such as the Donations (Community Chest Fund) Rules (S.L. 123.162) which allow for a 100% tax deduction of donations granted to MCCF. The tax deduction has been introduced in 2014, initially for a one-year period which period has been regularly extended, recently until 31st December 2018.
The tax deduction is open to companies and partnerships making a cash donation of at least €2,000 to the MCCF in a relevant year. A claim for the tax deduction can be made provided that a certificate in respect of that same donation is issued by the MCCF and submitted by the undertaking together with the income tax return for the year. The deduction shall only be allowed where the MCCF has provided all details of the donation to the Commissioner within the stipulated timeframe.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.