The legislation of the Republic of Latvia provides for the following tax breaks for donors
For Legal Entities: Corporate Income Tax Relief
Exclude from the corporate income tax base for the tax period the amount donated, but not more than five percent of the profit for the previous fiscal year after taxes;
Do not include the donated amount in the corporate income tax base for the tax period, but not more than two percent of the total gross wages calculated for employees in the previous reporting year, on which state social insurance contributions were paid;
Reduce the corporate income tax calculated on dividends for the reporting year during the tax period by 85 percent of the donated amount, but not exceeding 30 percent of the corporate income tax calculated on the dividends.
Individuals—personal income tax payers
If a donation has been made to a budgetary institution, to an association, foundation, or religious organization registered in Latvia, or to an institution granted public benefit organization status, or to a non-governmental organization registered in an EU or EEA country, that operates under a status comparable to that of a public benefit organization.
Donation amounts may be included in your annual income tax return. Please note that the total amount of donations may not exceed 50% of your annual taxable income, but may not exceed 600 EUR.
Documents (such as a payment order) confirming that the donation was made must be retained.
