By donating to ELA, an association recognised as being of public utility, you benefit from a tax reduction.

Your donation can be made in one of the following ways:
• Payment of money.
• In-kind donation (e.g. a work of art).
• Payment of contributions.
• Waiver of income or products (e.g. waiver of copyright).
• Expenses incurred in the context of a voluntary activity.

The amount exempted varies according to your situation.

Individuals

The tax reduction is 66 % of the amount of the donations. This reduction applies to a maximum of 20% of taxable income.

For example: A donation of €50 entitles you to a tax reduction of €33. Your donation costs you only €17 after tax reduction.

Companies

Whether you are subject to income tax or corporation tax, you benefit from a tax reduction equal to:

• 60% of the amount of the donation for a total donation of €2,000,000 or less,
• 40% for a total donation of more than €2,000,000.

However, the amount of donations used to calculate the reduction may not exceed, over a single tax year a ceiling of €20,000 or 0.5 % of the company’s annual turnover excluding tax if the latter amount is higher. If this ceiling is exceeded, the excess donation is spread over the next 5 financial years at the most, after taking into account any new possible donations made during these years. The rate applied to this surplus is the rate applied to the original amount.

For example: A company makes donations of €46,000 in the current accounting year. Its annual turnover before tax is €5,500,000. The ceiling applicable to this financial year is therefore set at 0.5% of its turnover excluding tax and VAT(€27,500).

For this accounting year, the company benefits from a tax reduction equal to 60% of €27,500 (the ceiling) = €16,500 reduction.

The excess donation equal to €18,500 (46,000 – 27,500) can then be taken into account in the next accounting year.

In the following accounting year, the company makes donations of €20,000. Its turnover before tax has risen to €8,000,000. The ceiling applicable to this financial year is therefore set at 0.5% of its turnover excluding tax and VAT(€40,000).

For this accounting year, the company benefits from a tax reduction equal to 60% of €20,000 + 60% of €18,500 (surplus from the previous year) = €23,100 of tax reduction for that financial year.