The legislation of the Republic of Latvia provides for the following tax benefits for donors

Corporate income tax relief for legal persons

• Exclude from the taxable base for the period the amount donated, but not more than five per cent of the profit after tax for the previous accounting year;
• Exclude from the taxable base for the period the amount donated, but not more than two per cent of the total gross wages calculated for employees for the previous accounting year, on which state social insurance contributions have been paid;
• Reduce the amount of corporation tax calculated in the tax period on dividends calculated in the accounting year by 85 per cent of the amount donated, but not exceeding 30 per cent of the amount of corporation tax calculated on the dividends calculated.

For individuals – personal income tax payers

• If the donation is made to a budgetary institution, an association, foundation, religious organisation or their institution registered in Latvia, which has been granted the status of a public benefit organisation, or a non-governmental organisation registered in an EU or EEA country, which operates in a status equivalent to that of a public benefit organisation.
• Amounts of donations may be included in the annual income tax return Please note that the amount of donations may not exceed 50% of the annual taxable income, up to a maximum of EUR 600.
• Documents (e.g. a payment order) proving the donation must be retained