Types of scholarships:
In accordance with the Public Benefit Organisation Law:
Natural persons who are entitled to use the tax reliefs specified by the law On Personal Income Tax – a reduction in the taxable income of a natural person for the donated amounts may not exceed 20% of the taxable income obtained.
To receive a tax relief, donors:
Legal persons entitled to benefit from the tax reliefs provided for by the Corporate Income Tax Law (Section 12) — residents and permanent establishments, can reduce their tax in three different ways. A donor can select only one of the following reliefs and apply it during the entire reporting year:
Property or financial means which a taxpayer, on the basis of a contract, without consideration transfers to the organisation referred to in Paragraph one of this Section for the achievement of the objectives specified in the articles of association, constitution or by-laws thereof shall be considered a donation within the meaning of this Section, if a reciprocal duty has not been imposed on the part of the recipient to perform activities which are considered consideration.
The Ministry of Finance (MF) of the Republic of Latvia (RL) granted the status of a public benefit organisation to the Development Fund (Decision No. 61 of 22 April 2005) with the operation direction – supporting education, science, culture and sport, which gives donors the right to receive a corporate income tax relief in accordance with the provisions of Section 20.1 of the Corporate Income Tax Law.