How to Deduct Charitable Donations from Your Taxes

The idea of doing good while also benefiting yourself is appealing to many. The Austrian tax system allows you to do just that through the deductibility of charitable donations. As of January 1, 2017, the process for this has been greatly simplified.

New Regulations for Deducting Charitable Donations Since 2017

As of January 1, 2017, charitable organizations are required to report your donations directly to the tax authorities. This means your donations will be automatically included in your employee assessment (Arbeitnehmerveranlagung). For you, this translates to less paperwork and more time for the things that truly matter.

What Do You Need to Do to Deduct Donations?

To ensure the deductibility of your donations, correctly provide your first and last name as well as your date of birth when making a donation. Make sure that the spelling of your name matches the one on your registration form.

Practical Tip: Use special payment slips or include your correct details in the "purpose" field of your standard payment slip. If you leave the "payment reference" field empty, your information will be automatically transmitted.

Which Donations Are Tax Deductible?

Not all donations are tax deductible. There are specific institutions and organizations to which you can donate in order to benefit from tax deductibility.

How Do I Find Eligible Institutions?

You can check the official BMF website to confirm whether your chosen organization is on the list of eligible institutions.

Practical Tip: Be cautious with statements like "Your donation is tax deductible" on flyers or brochures. These are not always reliable. Only the official list from the Finance Ministry provides reliable information.

Limitations on the Tax Deductibility of Donations

The amount that can be deducted is limited. For private individuals, there is a cap of up to 10% of the total income for the respective year. For companies, up to 10% of the profit (before taking into account the tax-free allowance) is deductible.

Automatic Data Transfer Simplifies the Process

Thanks to the new regulations, an automatic data exchange takes place between the charitable organizations and the tax office. This simplifies the process for both taxpayers and the tax administration.

Practical Tip: To stay updated, you can subscribe to a Finance Ministry newsletter.

We hope this newsletter provides you with valuable information as a tax consultant in Mödling and we are available for further questions on the subject of the deductibility of charitable donations at any time.

P.S. This article serves for initial orientation and does not replace professional tax advice. For specific questions regarding the deductibility of charitable donations, please contact us directly