Donating and taxes

If at the end of the organization's introduction is a reference, that the organization is included on the list of income tax incentive non-profit organizations, the donors will get back the income tax paid from their donation and the donations made by companies are tax-free (Estonian Income Tax Act § 49).

For donors

As a private person you can deduct your donation from your income in case if it is made to a legal entity which is included on the list of income tax incentive non-profit organizations and foundations. These organizations have also a responsibility to report the Estonian Tax and Customs Board about their donors, and in this case, the relevant information should reach out to the donor's pre-completed tax declaration form.

In total, a donor can deduct up to 5% from his/her income of the same year, from which there are already made other deductions (interests, training costs, etc.). The Tax and Customs Board may require documentary proof of the donation.

For organizations

Income tax incentives can be applied for in Estonia by non-governmental organisations which operate in the interests of charity or the public, i.e. not merely for the good of their members or specific target group. The list does not include professional organisations and labor unions or associations created in support of business or political parties.

Such organisations are added to the list for approval twice a year by the government (more than 1500 non-governmental organisations) and the same status also applies to donations made to members of church and congregation registers.

Non-profit organisations and foundations who wish to be added to the list of those eligible for income tax incentives will find useful information on the website www.ngo.ee/teabekeskus.

Declaring donations

Non-profit organisations and foundations do not have to pay taxes on donations received, although those included on the list as well as political parties, universities and hospitalised individuals are obliged to declare all monetary and non-monetary donations to the Tax and Customs Board. Declarations must be submitted by 1 February so that the Tax and Customs Board is able to record the details on the pre-completed tax declarations of private individuals. The use of donations and gifts must be declared by 1 July each year.

Useful links:

Tax and Customs Board
Network of Estonian Nonprofit Organizations