Enterprises

The Law provides a tax relief for patrons (Section 12), which may be applied for a taxpayers donating to an organization of public benefit. The taxpayer may choose one of the following:

• I To exclude the amount of donation from the the taxable base of the taxation period, not exceeding 5% of the previous year's profit after tax;
• II To exclude the amount of donation from corporate taxable base of the taxation period, not exceeding 2% of the total gross wage earned by employees from the previous reference year, from which state social insurance payments have been paid;
• III To reduce the corporate income tax calculated from dividends of the reference year by 75% of the donated amount, not exceeding 20% of the corporate income tax of the dividends.

The limit in points I, II or III applies to the total amount of donations made during the reference year.  

Individual patrons

The tax relief for individuals provided under Section 10, Paragraph one, Clause 3 of the Law on Personal Income Tax stipulate that the following payer's expenses are deducted from the amount of taxable income: amout which have been transferred in the form of a donation or gift to registered societies, foundations and religious organizations or their institutions of Republic of Latvia that have been granted a status of public benefit organization under the Public Benefit Organizations Law.