What are the tax benefits for companies (businesses) and individuals who donate?

When it comes to charity campaigns and giving, surely what drives people is a kind heart, compassion and the desire to be of help to others. We at the Pavel Andreev Platform firmly and unwaveringly believe in human kindness. What could be more normal than wanting to help a person in need? Our way of helping as many people as possible is through our platform. This is how we enable anyone in need to create adonation campaign to raise the funds they need. There is also the option for a third party to set up the campaign for the benefit of the person in need.

Although donations are based on kindness, we still feel it necessary to inform you that companies (businesses) that donate have the opportunity to benefit from tax advantages. If you fall into this category, do not hesitate to take advantage of your right.

Tax benefits for individuals and companies in Bulgaria

Individuals and legal entities have the opportunity to receive tax benefits when making a donation on the PavelAndreev.ORG platform. They are as follows:

• Tax relief for individuals when making a donation, according to Article 22 of the Tax Act ,persons who donate funds tonon-profit legal entities with a public benefit status may benefit from tax relief of up to 5 percent of the total amount of the tax bases under the Tax Act.For this purpose, they must attach a service note (certificate) for the donation made issued by the Pavel Andreev Foundation when submitting the tax return under Article 50 of the Tax Act. Thetotal amount of donationsmadeduring the year shall be recorded in Annex 10 of the tax return in Part IX, line 5, column 4.
• Tax relief for Legal Entities in case of donation, according toArticle 31 of the Corporate Income Tax Act, accounting expenses for donations are recognised for the legal entities liable for corporate income tax in the total amount of up to 10% of the positive accounting financial result (accounting profit).

The necessary donation certificates are required as follows:

• in case of donation by the automatic methods of the platform (card, paypal, applepay, googlepay, revolut) - from the page of successful donation or from the email-receipt of successful donation
• when donating to the IBAN account of the Foundation - by contacting us via email.

Tax deduction for donations made

For donations made, you have the opportunity to receive a tax deduction that reduces your tax basis by up to 65% in total. AtPavelAndreev.ORG we think it is right to introduce you to this feature, because not everyone knows that they are entitled to it if they are a donor. There is a limit up to which it is possible to apply this relief and it is in the amount of 5, 15 or 50% of the amount of your tax base. What the exact amount will be depends on the type of organisations your company has supported:

You are entitled to the maximum amount of relief, i.e. up to 50% of your tax base, if you donate to the National Health Insurance Fund. This applies to donations for activities related to the treatment of children and financed by transfers from the budget of the Ministry of Health, or "Assisted Reproduction Centre". On the pavel andreev platform you can regularly find similar ideas for donations.

If you make donations to culture, this allows you to deduct up to 15% of your tax base.

Tax deductions available for donations to other organizations, as long as they are specified in the law, are limited to 5%. These include medical and health care institutions, nurseries, kindergartens and schools, the Bulgarian Red Cross, etc.

In case you support organizations that belong to more than one category, the total amount of the relief cannot exceed 65% of the amount of your annual tax base.

There is an option for your donations to be in kind. Then the option is to deduct the purchase price of the donated items or their market value. This applies if they were purchased up to three months before the date of the donation.

How do you take advantage of tax deductiblegifts?

In order to benefit from this option, you need to complete a tax return under Article 50 of the Income Tax Act. It is then accompanied by documents that certify the status of the person receiving the donation and that the object of the donation was actually received. If you are unsure whether your company is entitled to benefit from tax relief as a donor, you can ask one of the Platformemployees , Pavel Andreev,for guidance .

Document for donors

We at PavelAndreev.ORG can provide you with a document certifying the donation or donations made. This document entitles you to take advantage of the tax deduction due to you when filing your annual tax return. It's called a donation certificate and in cases where you donate by card, PayPal, ApplePay, GooglePay or Revolut, you can request it automatically from the successful donation page or from the email receipt we send you.

5% tax deduction

Your tax basis can be reduced by up to 5% if you make a donation to medical or health care facilities, as well as to various specialized social service institutions. The same relief applies if you donate to the Social Assistance Agency or the Social Assistance Fund. This allowance is also valid when making a donation to specialised institutions for children under the Child Protection Act. It also applies if you fund donation campaigns in support of homes for the care and education of children deprived of parental care, nurseries, kindergartens, schools, higher education institutions or academies.

This is one of the reliefs that companies most often benefit from.

15% tax relief

Itis possible to reduce your tax base by up to 15 per cent if you choose to make a donation for the benefit of culture and its development.

50% tax relief

You canreduce your tax base by up to 50 per cent if thedonationyou make is for the benefit of the Children's Treatment Fund Centre, the Assisted Reproduction Fund Centre and the Transplant Fund Centre.

Also, you can check out the Fund for the Treatment of Children Abroad at the PavelAndreev.ORG platform and support it with a monthly card and PayPal donation or a single card donation.

Other tax deductible donation options

Anotherinteresting option is the possibility to benefit from Bulgarian tax deductions for donations made to organisations and citizens located in another EU or European Economic Area country. This possibility is relevant if they are similar to the preferential circle of Bulgarian recipients of donations. In this case, it is a mandatory condition that the donor has an official document on the status of the recipient of the donation from a competent authority, to be translated into Bulgarian by a sworn translator.

Don't miss out on your tax relief

Although we have already mentioned that we firmly believe that goodness lives in everyone, we also believe that kindness should be rewarded. If you have the opportunity to take advantage of a tax break - don't hesitate, do it. Some people consider this possibility for a long time - is it right to receive a financial benefit for deciding to help. Different nations have many wisdoms associated with doing good, which generally create the idea that it is not acceptable to do good and expect good to be done to you in return. But why not? What could be better than for kindness to be contagious - for every person for whom a gesture is done to respond by making a gesture to someone else? Then surely the world would be an even more wonderful and kind place.

Andif you are firmly convinced that you do not want to receive money in exchange for participation in charity actions, then you can still apply for the funds you are entitled to and with them support one of the active campaigns of pavelandreev.org.