Donors to receive tax benefits
The State Duma has approved the Third and Final Reading of a law that sets out the benefits for individuals and legal entities that provide financial support to State and municipal cultural institutions.
The text aims to encourage the raising of funds in support of cultural initiatives. Under the law, regional authorities can increase the level of social tax reductions “for charitable purposes” from 25% to 30% of a person’s flat personal income tax rate if philanthropists support activities undertaken by local state and municipal cultural institutions and NGOs, including charities.
A philanthropist selflessly donates property and cash to citizens and legal entities, carries out work, as well as providing services and other support. The State should not tax money or property transfer transactions, or take them into account for taxation purposes.
Once the law comes into effect, cultural institutions (museums, libraries, archives, theatres, orchestras, concert halls and cultural houses) will receive investments to help in the preservation, development and application of new technology.