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Tax deductions: Ireland

Disclaimer: The below is not legal advise, - you should always consult with your locale tax office about how to obtain a tax deduction

Below you find the most basic information about tax deduction in Ireland. 
Should you have any further questions, please contact your local tax authority. 

Tax deduction on donations to charity is possible in Ireland. There are, however, different rules according to whether you are an employee (in which case your employer pays taxes), self-assessed, or a company.

1) Employees (PAYE)

  • The tax deduction will benefit the charity.
  • There are currently two tax rates: 20% and 41%.
  • Are you working for the charity, the maximum tax deduction rate is 10%.
  • Minimum donation: €250 (cash)
To illustrate, here is an example: 
A donor gives 250€, and he is taxed at 20%. Then the relief would be 312.5 (250 x 100/80). So the charity receives 250€ from the donor and 62.5€ from Revenue. 
 

In order for the charities to benefit from the tax deduction, the donor must fill in a form (CHY2 Certificate). This is commonly sent to the donor by the charity. If not, it can be downloaded from www.revenue.ie

In this form, the donor must fill in details of the donations along with his or her PPS number. The form is returned to the charity, who then passees it along to Revenue. 

2) Self-assessed:

  • Are you self-employed, you will benefit from the tax deduction.
  • Same system as PAYE
  • Remember to keep the receipt received from BetterNow when making the donation.

3) Company:

  • If a company donates to charity, the company benefits from the tax deduction.
  • There are different tax rates for companies. 
  • In the case that the donor is both a PAYE-taxpayer and self-assessed, the rules for self-assessed will apply. 


It should be noted, that these terms are subject to change according to Irish legislation. 
For more information, please contact your local tax authority. Go to: www.revenue.ie.

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