Charity fund taxes

Nonprofit status, VAT, income tax

Details

  • Nonprofit attribute (003)

    Register of nonprofits: income spent on statutory activity is income-tax-free.

  • Charitable aid — no VAT

    Free transfer of goods/services within charitable activity — outside VAT (with exceptions).

  • Non-statutory income

    Rent, sales — taxed under general rules; keep separate accounting.

  • For the donor

    Businesses: charitable contributions deductible up to 4% of taxable profit.

Attribute 003 in the nonprofit register is what makes a fund 'tax-free': without it, donations are taxed as ordinary income. File at registration or the next quarter.