How do businesses declare donations they receive?

According to Franch tax law, the full donation amount is credited to account 771 dedicated to Non-recurring income on management operations as this revenue is not a regular form of business activity.

In all cases mentioned above, it is the responsibility of project owners to declare the appropriate information to their tax authorities.

How do the self-employed, with French auto-entrepreneur status declare the donations they receive?

Donations collected are considered as revenue and should be declared in the industrial and business revenue category (BIC). This revenue is used as a basis for calculating the French flat-rate levy (prélèvement fiscal libératoire), or taxable income if the auto-entrepreneur is subject to the French micro-enterprise tax regime.

How do associations declare donations they receive?

The corresponding donation amount is credited to account 754 dedicated to Fundraising revenue, or account 756 for Subscription revenue.

How do private individuals declare donations they receive?

In France, the taxpayer must declare donations as industrial and business revenue (BIC).

In other countries, taxpayers are required to declare donations received in the appropriate income category, in compliance with local tax laws.

Are donations tax-deductible for businesses?

Donations made by businesses liable for income tax or corporate tax are deductible only if they meet the general conditions for deducting business expenses. In particular, they should result in a decrease in net assets, in other words, constitute overheads.

Are donations tax-deductible for private individuals?

Donations made by private individuals do not usually give rise to tax deductions.

In some rare cases, project owners are public interest organizations and it will be pointed out in the project description. In this case, the project owner (not Fundovino) may provide a French Cerfa document (N° 11580*03) and 66% of the donation amount will be eligible for tax reduction, limited to 20% of taxable income.

These tax receipts should be kept for 3 years in case you are required to provide proof to the taxation authorities.

What is the tax status for donations?

All financial contributions made by Fundovinors are considered as donations. At the donor’s express request, the project owner may provide a receipt for a donation.