Tax Authority expands criteria for charitable donations

Prior to Knesset-approved amendment, donors could only receive tax deductions for contributions of over NIS 420 and under NIS 4.351m., or 30% of their taxable Israeli income.

Your Taxes_311 (photo credit: Thinkstock/Imagebank)
Your Taxes_311
(photo credit: Thinkstock/Imagebank)
The Israel Tax Authority expanded its criteria for what constitutes a charitable donation Wednesday, lowering the minimum threshold to NIS 180 and raising the ceiling to NIS 9 million.
Prior to the Knesset-approved amendment, donors could only receive tax deductions for contributions of over NIS 420 and under NIS 4.351m., or 30 percent of their taxable Israeli income – whichever was the lower of the two.
ITA Director Doron Arbeli said the amendment was part of the Treasury’s policy of strengthening the nonprofit sector and encouraging philanthropy.
Three weeks ago, he said, the authority launched a computerized system that will enable thousands of businesses to deliver 35% tax deductions on all donations directly to employees. This eliminates the need for employers to apply for specific approval from the Tax Authority or for employees to go directly to a tax bureau to collect a tax rebate, he explained.
“Amendment of the minimum threshold to NIS 180 will first and foremost enable charitable institutions to approach a broader range of workers,” Arbeli said. “We hope that this will assist in leveraging microdonations, in order to establish a new and stable source of funds for this important sector.”


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