Tax relief on donations

The Russian Federation’s (RF) ministries of
finance (MF) and justice (MJ) have altered their views regarding the ministry
of economic development’s (MED) suggestion that allow donors be allowed to
transfer 13% tax relief on donations to NGOs



federal media, including Izvestia, say that originally the MF and MJ came out
against the MED’s suggestion because the differences between the tax regimes
applying to individuals on the one hand and NGOs on the other meant that would
make implementation problematic. As of now individuals are entitled to receive
tax relief on donations of up to 25%. The MED’s proposal was that they should
be entitled instead  to make 13% relief
available to the recipient NGO. For its part the MJ objected because it would
be impossible to decide whether a particular NGO could be classified as
socially oriented.



has been informed that since 12 February there has been a fundamental shift in
the attitude of the departments. Elena Topoleva, chair of the RF public
chamber’s committee on social policy, labour relations and quality of life, and
member of the presidential  council on
the development of civil society and human rights, told ASI that after lengthy
deliberations with MED and NGO representatives, the MF had accepted that the
measure was important for the country as being conducive to the development of
private charitable giving and accorded it their support.



proposal which at first elicited a negative response from other departments was
included in a package of measures designed to support socially oriented NGOs up
to 2018 submitted to the government in December. The measures were formulated
in response to a presidential order concerning the implementation of national
social policy dated 7 May 2012. Ms Topoleva observed that a similar system
operated in Great Britain and many other countries. Now MF officials are
preparing to devise a special tax mechanism for implementing the measure. Ms
Topoleva said that the MJ also now had no objection to the initiative.

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