NGOs
Donations to qualified charities are tax-deductible expenses that can reduce your taxable income and lower your tax bill. You must itemize your tax deductions to claim them, however, and this is typically only in your best interest if the total of all your itemized deductions exceeds the amount of the standard deduction you would receive for your filing status.
Tax Deductions on Monetary Donations
As from 1 January 2016, companies making a monetary donation to eligible cultural organisations may benefit from a tax deduction.
150% Tax deduction Upon approval from the Arts Council Malta, eligible undertakings can claim an amount equivalent to 150% of the monetary donation as a deduction against income for the year of assessment in which the donation has been made. The maximum deduction allowable in any financial year is of €50,000.
Who is eligible?
This incentive is available to limited liability companies including partnerships that have elected to be treated as a company. Eligible companies that wish to avail of this incentive are required to submit an application form for approval by the Arts Council Malta.
The income tax incentive will not apply where the donor is in any way related to the beneficiary.
Which are the eligible Cultural Organisations?
Monetary donations qualify in terms of these rules if they are made to any of the following organisations (and the specific projects, if applicable):
Non-profit cultural organisation which are registered with the Commissioner
Voluntary Organisations; Public Cultural Organisations - Teatru Manoel, Mediterranean Conference Centre, Malta Philharmonic Orchestra, Fondazzjoni Centru ghall-Kreattivita, Pjazza Teatru Rjal, Fondazzjoni Valletta 2018, Zfin Malta; Arts Council Malta; Malta Film Commission – for the purpose of raising funds for specialised training projects for the local film industry; and Malta Film Fund – in order to raise additional funds for the part-funded project during the implementation of the film project.
Application process
In order to avail of this incentive, an application form together with supporting documentation should be submitted to the Arts Council Malta by 30 January of the year following that in which the donation was made.
Following approval of the application, the Arts Council Malta will issue an Incentive Entitlement Certificate in favour of the eligible company, entitling the company to claim a tax deduction in respect of such donation.
For more information and details, copy and paste the following link:
http://www.maltacvs.org/wp-content/uploads/2012/02/Tax-Exemption-Proposal-for-Voluntary-Organisations-Final.pdf