Estonia & Latvia Propose Tax Exemptions
The Estonian Government have proposed income tax exemptions for donations made to hospitals and other such bodies.
According to the Government, the exemption will apply to donations and gifts to support efforts at corporate hospitals, welfare institutions and state and local government agencies. Normally, donations can only be made tax-free to non-profit associations and foundations that operate in the public interest and which are charitable.
In Latvia, meanwhile, the Government this week approved a Ministry of Finance proposal to exempt donations intended to help prevent the spread of the virus from corporate tax.
Under the plans, the corporate tax exemption will apply to donations of goods and services to entities directly affected by the virus, including companies, associations and foundations. The exemption would apply from the start of the state of emergency until the end of 2020.
Both sets of measures need to be approved by the respective national Parliaments before they can enter into force.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look