An important advantage of public benefit activity is that it helps society, specifically, in many different ways. This includes charitable giving, the defense of human rights and individual freedoms, the growth of civil society, the advancement of knowledge, the advancement of culture, the promotion of health and disease prevention, the support of sports, the preservation of the environment, the provision of aid in the event of a disaster and other extraordinary circumstances, and an increase in social welfare, particularly for the underprivileged and socially vulnerable groups of people.

Support for public benefit groups via tax breaks

All foundations, institutions, and religious organizations that engage in these activities and are prepared to use their legal claim for tax breaks must register to obtain the status of a public benefit organization. People who give to these organizations are also eligible to tax breaks as specified by law, except in situations when they withdraw their gift.

Public Benefit Organizations Law

These organizations are eligible for assistance under the Public Benefits Organizations Act, which explains:


A donation is defined as any kind of asset or sum of money given freely and in accordance with mutual consent to a public benefit organization to further the objectives stated in the organization’s bylaws, articles of incorporation, or constitution, and for which tax deductions may be claimed. Except for situations when they rescind their gift, individuals who make donations to these organizations are eligible to tax breaks as specified by law. Any assets or funds donated to a nonprofit organization for the public good should not be seen as donations in cases when the organization has been mandated to carry out compensating activities in the same amount. Donations cannot be utilized to make up for losses that the public benefit organization has incurred as a consequence of its commercial operations.


Non-governmental organizations may draw donations like these as a result of having public benefit status conferred on them:

Legal people

There are three methods that legal persons who are eligible to receive the tax refunds decided under the Law on Corporate Income Tax for residents and permanent representative offices may lower their tax. During the whole reporting year, a donor may only apply for one of these rebates:

  • Exclude donations from the tax base at up to 5% of profit after taxes for the prior year
  • Exclude from the tax base up to 2% of NSIC’s total gross salaries in the prior year
  • Reduce dividend CIT by 75% of the donation, with a 20% maximum

When choosing the third option, the CIT from dividends will be reduced rather than the number of gifts, which will lower the taxable base.

Natural people

The deduction of a natural person’s taxable income for donations from earned taxable income cannot be more than 20% for natural persons who are eligible to utilize the tax rebates set in the Law On Personal Income Tax.