OPTIMIZATION OF THE TAX LOAD IN THE SPHERE OF CHARITY ACTIVITIES ON THE EXAMPLE OF FRANCE LEGISLATION

Exploring the issues of taxation of charitable activities at the international level, we come to the conclusion that countries with a relatively stable and developed economy at the legislative level regulated this area of ​​activity quite a long time ago. Back in 1891, when considering the English case, the subject of which was the decision on the issue of exemption from taxation of charitable funds attracted not only by religious organizations, but also by individual charitable entities, a number of principles and established rules were adopted, which became the foundation for the further legislative activity of most European countries

The result of the legislative foundation in the field of charitable activities is the reflection of the latter in European society, its attitude towards such activities and in the direct implementation of charitable activities by individuals and business entities.

Thus, by improving the tax legislation, the French tax authorities provided an opportunity to take into account contributions to charitable organizations and charitable foundations in order to reduce the corresponding tax burden on individuals and legal entities.

Optimization of the tax burden of individuals

Individuals can take advantage of a tax liability discount of 66% on the amount of donations made, but within the limit - up to 20% of their own taxable income. If a person has exceeded the established limit, he can carry over the excess amount for the next five years. In practice, by making an appropriate contribution to a charitable foundation or organization, this mechanism allows a person to use part of their taxes, for example, for their own medical care.

Optimization of the tax burden of legal entities

Legal entities can receive a corporate tax (income tax) discount of 60% of the amount of donations, but within the limit - up to 0.5% of their own annual turnover. If this limit has been exceeded, the business entity may carry forward the corresponding surplus to pay taxes over the next five financial years.

In accordance with the above, in most European countries, in particular in France, the tax authorities encourage their own businesses and individuals to be directly involved in the implementation of charitable activities by implementing legal mechanisms that allow optimizing the tax burden within the expected limits.

Taking into account the above, if it is necessary to optimize your taxation abroad, the relevant specialists of the Law Firm "Prykhodko and Partners" will provide you with full legal support for preferential conditions in the territories of France, Italy, Great Britain, Germany and others.