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Re: Business - Tax deductions - Gifts and donations resources

Initiate

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Hi,

 

After some googling and searching I am only able to find ATO resources on gift and donations tax deductions for indviduals (https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/other-deductions/g...) . Does the ATO have any for business, e.g. what can be claimed, what the limits are, how to claim etc?

 

Thanks,

Phil

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Most helpful response

ATO Community Support

Replies 3

Hi @phillipdarley

 

A business can also claim deductions similar to individuals as well.

 

Gifts and donations fall under other operating expenses.

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Most helpful response

ATO Community Support

Replies 3

Hi @phillipdarley

 

A business can also claim deductions similar to individuals as well.

 

Gifts and donations fall under other operating expenses.

Initiate

Replies 2

Ok great thanks. When you say claim back - is that 10% of the donation / gift amount? e.g. my business donates $100AUD to a charity then the business can deduct $10 off tax bill? Thanks

ATO Community Support

Replies 1

Hi @phillipdarley

 

When you claim deductions, you'll claim the full value of the expense paid. You claim this on your tax return.

 

This then reduces your taxable income by that amount, which then means the tax you need to pay is reduced by the tax rate on that amount.

Initiate

Replies 0

Thanks again for your reply. Thats what I fought but sounded to good to be. true. I've never taken advantage of this. So are there limitations to the % or amount you can claim back of your tax feturn or can you basically donate any amount? Thanks 

ATO Community Support

Replies 0

Hi @phillipdarley

 

Most charities appreciate as much as they can get. So you can donate what you wish. However the tax deduction claimed can only reduce your assessable income to nil. Also the gift cannot add to or create a tax loss. There are some other options around spreading the donation too. When can I claim? outlines how these work.