RTU Development fund
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RTU Development fund

Other types of scholarships

Types of scholarships:

  • "Academic Achievement Scholarship" (usually monthly support scholarships);
  • "Science and Research Achievement Scholarship" (usually for the developed research, a term paper or a graduation paper on the subject offered by the Scholarship Grantor);
  • "For Achievements in Sport" (to athletes, coaches, judges and veterans).

In accordance with the Public Benefit Organisation Law:

  • donation is a property or financial means which a person (donor) transfers free of charge, on the basis of mutual agreement, to a public benefit organisation for the achievement of the objectives specified in its articles of association, constitution or by-law and for which tax incentives may be applied;
  • persons who donate to a public benefit organisation are entitled to the tax relief provided for by law, except in cases where they withdraw their donation;
  • a property or financial means transferred to a public benefit organisation are not regarded as a donation to the extent that the public benefit organisation has been determined to perform activities which have a remuneration nature;
  • donation may not be used to cover losses incurred as a result of economic activities of a public benefit organisation.

For individuals

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:

  • should complete their annual income declaration, indicating there the donation amount, and submit the declaration to the SRS;
  • the annual income declaration should be supported by a copy of the decision of the Ministry of Finance issued to the foundation RTU Development Fund and documents attesting the amount donated to the foundation (a cash receipt order or a bank payment order);
  • the documents supporting the amount of donation should be retained by the natural person for three taxation years. 

For entrepreneurs

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:

  • not to include the donated amount in the base taxable with the corporate income tax in the taxation period but not more than five per cent of the profits from the previous reporting year after the calculated taxes;
  • not to include the donated amount in the base taxable with the corporate income tax in the taxation period but not more than two per cent of the total gross work remuneration calculated for employees in the previous reporting year from which State social insurance contributions have been made;
  • to reduce the corporate income tax calculated on the dividends calculated for the reporting year in the taxation period by 75 per cent of the donated amount but not exceeding 20 per cent of the calculated amount of corporate income tax on the calculated dividends.

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.