Julija Belkina
+371 29 193 410  charity@charity.lv

The Charity Fund was established by the LNK Group holding company in 2010, in order to combine the eff¬orts of the holding company’s enterprises and their partners in providing the best management of charity projects, as well as maximum effectiveness of their implementation.

LNK Charity Fund provides support to both children and adults, who are having significant health problems, to indigent persons and to people with special needs. The Fund supports all sorts of communities: sports, educational, cultural, religious, ethnic minority groups alongside with the retired construction industry workers.

By donating to the LNK Charity Fund, you can receive considerable tax abatements. Abatements are available for both private persons and enterprises.

FOR ENTERPRISES

Enterprises, which donate to charity organizations and publicly funded institutions, receive the enterprise income tax abatement.

  • The tax abatement constitutes 85% of the donated amount.
  • The total amount of the abatement for all of the enterprise’s donations per year cannot exceed 20% of the enterprise’s income tax amount, which is calculated before the abatement.
  • In order to obtain the abatement, an enterprise has to conclude a donation agreement with the recipient, has to fill in an annual enterprise income tax return, specifying the amount of donation, and hand in this return to the State Revenue Service according to the standard procedure.
  • It is important to note, that the donation value can include not only financial assets, but also property, which the enterprise gratuitously transfers to the donation recipient based on the donation agreement.

For example:

An enterprise, that has to pay the Public Treasury EUR 10, 000.00 of the total annual enterprise income tax, donates EUR 3,000.00. 85% of that amount is EUR 2,550.00; however, the abatement can be only EUR 2,000.00, without exceeding 20% of the total EIT amount.

FOR PRIVATE PERSONS

  • The donated amount will be subtracted from the annual taxable income amount before the taxation.
  • Only an amount not exceeding 20% of the total annual income taxable by personal income tax, can be subtracted from the annual taxable income amount.
  • In order to obtain the abatement, it is necessary to fill in an annual income tax return, specifying the donated amount and the donation recipient, and hand it in to the State Revenue Service.

For example:

A person, whose gross salary is EUR 10,000.00 per year (it is also the total amount of the annual taxable income), donates EUR 3,000.00. The tax abatement can be applied to EUR 2,000.00 of the total donation amount (20% of the annual taxable income). The amount of the abatement is 24% (for the personal income tax rate from EUR 2,000.00 – EUR 480.00).

Important!

Together with an enterprise’s or a private person’s annual income tax return, it is necessary to submit a copy of the decision of the Ministry of Finance on the assignment of the public benefit status to the recipient, as well as documents that confirm the amount of the donation (bank payment order), to the State Revenue Service. Legal persons must keep the payment order for five taxation years and private persons – for three taxation years.