EY Corporate Services Limited has kindly shared the following information regarding Tax measure to promote donations made to National Vaccine Institute.
On 5 May 2021 the cabinet approved a draft Royal Decree issued under the Revenue Code announcing a tax measure to promote donations to the National Vaccine Institute.
- Personal income taxpayers can claim deductions (cash) equal to one time the actual amount of donations made to National Vaccine Institute (monetary donations only). However, the total donation may not exceed 10% of net assessable income.
- Corporate income taxpayers can claim deductions (cash or assets) equal to one time the actual amount of donations made to National Vaccine Institute in the form of money or assets. However, the total donation may not exceed 2% of net taxable profits before deducting expenses incurred for public charity, the public benefit and education or sports.
- VAT exemption is granted for a VAT registrant making donations of assets to the National Vaccine Institute to support research, development, production and distribution of vaccines.
The tax measure applies to donations made through the e-Donation system of the Revenue Department between 1 January 2021 and 31 December 2023.