NGOs may benefit from tax relief for donors

11 February 2014

Donors to charities will be able to decline tax relief on their donations in favour of NGOs


The finance ministry of the Russian Federation are promoting a proposal under which NGOs will be able to benefit from the tax relief that would otherwise be due to individual donors.

Under the legislation currently in force, a donor may receive a rebate of 13% of their contribution via the state making a deduction from the donor’s tax bill. The ministry proposes that it be made permissible to forego this relief in favour of the receiving organisation.

Failing a tax declaration the donor might agree to the NGO’s applying for the rebate. An application might include more than one donor. To forestall abuse of the tax relief facility the Taxation Code provides that the total sum of the tax rebated in this way should not exceed 25% of the individual’s annual income.

The new article in the code brings into force one of a package of measures designed to enhance the support afforded to socially oriented NGOs for the period leading up to 2018, as approved by the government in 2013. As Kommersant (a newspaper) observes, the ministry’s amendments can make it possible to increase NGOs’ budgets without any loss to the state treasury.

The proposed amendments to Chapter 23 in Part Two of the Tax Code of the Russian Federation Federal Law may be seen at The public consultation stage will last until 22 February.

Author: Darya Shapovalova

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