Income tax on gifts, donations and costs of entertaining guests

(1) Resident legal persons, except persons included in the list specified in subsection 11 (1), shall pay income tax on gifts and donations on which income tax has not been withheld on the basis of § 41 or not been paid on the basis of § 48, taking into consideration the specifications specified in subsections (2) and (4). Income tax is not charged on goods transferred or services provided for the purposes of advertising which value excluding value added tax is up to 10 euros. Gifts also include prizes of commercial lotteries with the prize fund of up to 10,000 euros regardless of the limit provided for in the previous sentence.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(2) Income tax is not charged on gifts and donations made during a calendar year to persons included in the list specified in subsection 11 (1) or persons specified in subsection 11 (10) in an amount not exceeding one of the following limit values:
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]
1) 3 per cent of the amount of the payments subject to social tax pursuant to clauses 2 (1) 1)–4) and 6) of the Social Tax Act (hereinafter individually registered social tax) made by the taxpayer during the same calendar year;
2) 10 per cent of the profits for the last financial year of a taxpayer which ended as of 1 January of a calendar year, calculated pursuant to the legislation regulating accounting.

(3) The taxpayer has the right to calculate the gifts and donations specified in subsection (2) made during the calendar year in total. The taxpayer shall determine the total annual exemption for such gifts and donations, based on only one limit value of the taxpayer's choice specified in the same section.

(4) Income tax is not charged on payments by persons included in the list specified in subsection 11 (1) made in connection with the provision of catering, accommodation, transportation or cultural services to guests and business partners. In the case of other resident legal persons, income tax is not charged on such payments in the amount of up to 32 euros per calendar month. In addition, if such legal person is making payments subject to individually registered social tax, the legal person may make, in a calendar month, payments exempt from income tax in connection with the provision of catering, accommodation, transportation or cultural services to guests and business partners in the amount of up to 2 per cent of the total amount of the payments subject to individually registered social tax made by the legal person during the same calendar month.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(5) If, during some months of a calendar year, a resident legal person has not made the payments specified in subsection (4) or has made them in an amount below the limit values for exemption provided for in the same subsection, the legal person has the right to apply recalculation in total to the payments made during that month and the following months until the end of the calendar year.

(6) Persons included in the list specified in subsection 11 (1) shall pay income tax on all gifts and donations on which income tax has not been withheld on the basis of § 41 or not been paid on the basis of § 48, except the following gifts and donations made in pursuance of the objectives set out in their articles of association:
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]
1) gifts and donations made to persons included in the list specified in subsection 11 (1) and specified in subsection 11 (10);
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]
2) [Repealed - RT I, 18.11.2010, 1 - entry into force 01.01.2011]
3) material assistance granted to a natural person for subsistence, including financial assistance to the extent of the amount of average monthly expenses of a member of a household per calendar month according to the latest information disseminated by the Statistical Office;
[RT I 2006, 28, 208 - entry into force 01.07.2006]
4) souvenirs presented to participants in a permanent youth camp or youth project camp in the amount of up to 32 euros per participant in camp or project;
[RT I 2010, 44, 262 - entry into force 01.09.2010]
5) souvenirs presented at a sports event to the participants in the event, in the amount of up to 32 euros per participant in event;
[RT I 2010, 22, 108 - entry into force 01.01.2011]
6) goods transferred or services provided for the purposes of advertising which value excluding value added tax is up to 10 euros.
[RT I, 18.11.2010, 1 - entry into force 01.01.2011]

(7) [Repealed - RT I 2003, 88, 587 - entry into force 01.01.2004]

Дата добавления: 2015-11-14