The foundation Riga Technical University Development Fund has the status of a public benefit organisation since 2005.
Based on the granted status of a public benefit organisation, donors of Riga Technical University Development Fund:
legal persons are entitled to use the tax reliefs specified by the Corporate Income Tax Law (Section 12).
Donors can select only one of the following reliefs and apply it during the entire reporting year:
1) 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;
2) 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;
3) 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;
natural persons 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. Sections 5.1 and 5.2 of the Law on the Suppression of Consequences of the Spread of Covid-19 Infection prescribes additional terms and conditions for donors in 2020 (in which cases donations may be extended to operating costs of a company and an increase in the amount of donations not taxable with corporate income tax).