lahjoitusvähennykseen

Lahjoitusvähennys, or donation deduction, is a tax relief mechanism available in Finland that allows individuals and corporations to reduce their taxable income based on eligible donations made to specific organizations. This deduction aims to encourage charitable giving and support the work of non-profit entities.

To qualify for the deduction, the donation must be made to a registered Finnish public benefit organization or a similar entity operating within the European Economic Area. The organization must be recognized by the Finnish Tax Administration (Verohallinto) as a recipient of tax-deductible donations. The donation can be monetary or, in some cases, in the form of assets, although monetary donations are more commonly eligible.

For individuals, the deductible amount is typically a percentage of the donation, capped at a certain annual maximum. Corporations can also claim a deduction for eligible donations, often with different rules and limits compared to individuals. The specific percentages and maximum amounts are subject to change and are determined by Finnish tax legislation.

To claim the deduction, taxpayers must report the donation to the Finnish Tax Administration, usually when filing their annual tax return. The organization receiving the donation may also be required to report the donation to the tax authorities. Maintaining proper documentation, such as receipts or confirmations of the donation, is crucial for substantiating the claim. The purpose of the donation deduction is to provide a financial incentive for philanthropy and to support the social and cultural sectors in Finland.