At the beginning of 2015, the association “Rīgas Kuģis/Riga ship” obtained the status of a public benefit organization in the field of culture.
This status means that legal persons can reduce their income tax. The procedure for receiving tax discounts for legal entities is determined by the Article 20.1 “Tax discounts for donators” of the Law “On Corporate Income Tax” and Article 12 “Tax discounts for donators” of the Law of Corporate Income Tax.
Legal entities that are entitled to use the tax discounts set out by the Law of Corporate Income Tax (Article 12) can reduce the tax to residents and permanent establishments in three different ways. A donator can only choose one of the following benefits and apply it throughout the reporting year:
1) not to include the amount donated in the taxable base, but not more than 5% of the previous year’s profit after the calculated tax;
2) not to include the amount donated in the taxable base, but not more than 2% of the gross wage of employees calculated in the previous reporting year;
3) to reduce the calculated income tax from dividends by 75% of the donated amount, but not exceeding 20% of the calculated income tax from dividends. Choosing Type No.3 – The amount of donations does not reduce the taxable base but the income tax dividend.
This status means that for individual persons reduction of income tax may not exceed 20% of the taxable income. The procedure for receiving tax discounts for individual persons is determined by the Article 10 “Eligible expenditure” of the Law “On Personal Income Tax”.
We invite members and supporters to take advantage of the new opportunity and be active in attracting funds to finance the associaton’s activities and projects. Invite to support the association “Rīgas Kuģis/Riga Ship” your job heads, friends and friends of friends. If you have ideas and suggestions on how to promote this process, please let us know about your suggestions.
How you can get tax discounts?
For legal entities – if in this year you donate to the
association “Rīgas Kuģis/Riga ship”, then in the next year, when submitting the annual income tax return declaration to the State Revenue Service, according to the Law on Income Tax, “Tax discounts” must be indicated.
The declaration must be accompanied by a statement clearly stating the purpose of the transfer – Donation to the association “Rīgas Kuģis/Riga Ship”:
1.Organization income order if donate in cash or
2.Printed, confirmed bank payment order, if you deposit donation by bank
transfer.
For individual persons – if in this year you donate to the
association “Rīgas Kuģis/Riga ship”, then in the next year, when submitting the annual income tax return declaration to the State Revenue Service, according to the Law on Income Tax, donation has to be submitted in section “Eligible expenditures”.
The declaration must be accompanied by a statement clearly stating the purpose of the transfer – Donation to the association “Rīgas Kuģis/Riga Ship”:
1.Income order if donate in cash or
2.Printed, confirmed bank payment order, if you deposit donation by bank
transfer.
Support association
“Rīgas Kuģis/Riga Ship” by transferring donation to bank account:
Association “Rīgas Kuģis/Riga Ship”
Registration No. 40008211273
Bank – AS Swedbank
Account No. LV35HABA0551036814476
Purpose of payment: Donation to the association “Rīgas Kuģis/Riga Ship” (please specify)
When donating for a specific purpose, please indicate which of the activities of the association “Rīgas Kuģis/Riga Ship” you want to support. If you are not a member of “Rīgas Kuģis/Riga Ship”, please provide your contact information when making a transfer so that we can contact you.
P.S. We do not pay wages to ourselves!