site.btaCabinet Approves Draft Amendments to Corporate Income Tax Act to Encourage Sports and Education Donations

The Government approved a draft to amend and supplement the Corporate Income Tax Act, the Government Press Service reported on Thursday.

The new element in the law is the possibility of preferential tax treatment for expenses related to donations in favour of sports clubs and organizations, kindergartens, schools, universities and academies, when the donations are intended to support and develop both professional sport and sport for all. The changes concern Article 31 of the Corporate Income Tax Act.

The legislative amendment is accompanied by measures aimed at limiting opportunities for abuse and tax avoidance. It is proposed that, by order of the Minister of Youth and Sports, a system for reporting received donations and a mechanism for monitoring and accounting for their use according to their intended purpose be introduced, in accordance with the conditions of the law.