As a private individual, you can deduct your donation from your taxable income if the donation is made to an organisation listed by the government as eligible for income tax benefits. All members of the donation platform are included in this list.

You can deduct up to 1200 euros from your income for the same year, after other deductions (such as mortgage interest or training costs) have already been applied.

To have your donations appear on your pre-filled tax return, you need to log in to the donation platform or enter your personal identification code before making the donation.

You can find more information on the website of the Estonian Tax and Customs Board.

A legal entity can make tax-free donations of up to 10% of the previous financial year’s profit or 3% of the paid wages. Only one of these limits can be used per calendar year, and if the chosen limit is exceeded, income tax must be paid on the remaining amount.

In Estonia, organisations may be included in the list of tax-exempt associations if they operate in the public interest. Their goals are connected to the general needs of society and not aimed at benefiting a narrow group of people (for example, members or founders) or private interests. They work for the good of society as a whole or support those who cannot cope on their own. In addition, the organisation acts charitably, offering goods, services, or other benefits mainly free of charge or in another non-profit-oriented or generally accessible way.

To obtain income tax benefits, a non-profit association, foundation, or religious organisation that acts charitably and in the public interest (in line with § 11 of the Income Tax Act) must submit a proper application to the Estonian Tax and Customs Board to be added to the list of tax-exempt organisations.

Non-profit associations and foundations do not have to pay taxes on received donations. However, organisations included in the list of tax-exempt non-profit associations and foundations must declare all monetary and non-monetary donations. The declaration must be submitted by 1 February, together with the donor’s personal identification code, so the Tax and Customs Board can add the information to individuals’ pre-filled tax returns.

The use of donations and gifts must be declared annually by 1 July. This includes distinguishing between income from business activities and related expenses, as well as the use of surplus funds. The latter is used to assess whether the organisation remains eligible for the list of tax-exempt non-profit associations and foundations.