Donator – Recipient – Tax liability

Individual → Individual: no tax liability for donator or recipient. The donator cannot deduct the donation from their taxed income.

Individual → Listed union*: no tax liability for donator or recipient. The donator can deduct the donation from their taxed income according to the rates and conditions in of the Income Tax Act.

Individual → Business: the donator is not liable to taxation. The business has no tax liability when it receives the donation.

Business → individual: the donator taxes the donation at the income tax rate of 20%.

Business → Listed union*: the donation is tax-free within the limits set out in § 49, section 1, points 1 and 3 of the Income Tax Act.

Business → Unlisted union*: the donator taxes the donation at the income tax rate of 20/80.

Listed union* → Individual: the donator taxes the donation at the income tax rate of 20/80.

Listed union* → Unlisted union: The donator taxes the donation at the income tax rate of 20/80.

Listed union* → Listed union*: the donation is not taxed.

*A listed union is one that has been entered in the list presented in § 11, section 1 of the Income Tax Act.

We advise you to seek advice from the Tax Board, because every project is unique and the smallest detail could determine its tax liability.