How to use the donation certificate?

It is possible lower Income tax liability for years 2020 and 2021 and 2022 by deducting the tax base up to 30 %!

Natural persons

according to Section 15(1) of the Income Tax Act

Natural persons (including employees) may deduct the value of gratuitous supplies from the tax base if their total value in the tax period (calendar year) exceeds 2% of the tax base or it is at least 1000 CZK. No more than 15 % of the tax base can be deducted for a calendar year. This does not apply to calendar years 2020 and 2021 for which 30% can be deducted at most.

Self-employed individuals claim their tax deductions based on their donations directly on their tax return. Employees whose tax settlement is processed by their employer annually submit the donation certificates for the whole previous year to their payroll department no later than until the half of February. The tax base deduction and the subsequent settlement is then reflected in a higher March salary.

Legal persons

according to Section 20(8) of the Income Tax Act

A legal person's tax base can be deducted by the value of provided gratuitous performances if their value in the given calendar year is at least 2000 Kč. Altogether 10 % of the already lowered tax base can be deducted at most. For tax periods which ended between 1. 3. 2020 and 28. 2. 2022, it is possible to deduct a maximum of 30% of the lowered tax base.