Tax breaks for donations to the South
- Published: 24 Oct 2013 at 16.17
- Online news:
The cabinet on Thursday approved new tax incentives to promote charitable donations for people affected by violence in the South through the Southern Border Provinces Administration Centre (SBPAC).
The cabinet's resolution backs a proposal from the Finance Ministry that the government should issue a royal decree for the tax exemption to encourage donations.
Under the measure, donors will be allowed to deduct personal income tax equal to the amount they donate, as long as the donated money combined with other deductible contributions does not exceed 10% of their entire taxable income.
Corporate donors will also be allowed to deduct expenses for taxes equal to their donations, as long as the total amount they save on charity contributions does not exceed 2% of net profit.
The tax exemption will apply to donations made to the SBPAC from Jan 1 this year.