Benefits of Revenue Tax Back
Example of Tax-Back Benefits
(a) Individual on the standard rate 20%
Individual donates €500
Value of donation to charity €625, i.e. €500 x (100 ÷ 80)
Tax associated with the donation €625 - €500) = €125
The eligible charity or approved body will therefore be able to claim a repayment of €125 from Revenue at the end of the tax year.
(b) Individual on the higher rate 41%
Individual donates €500
Value of donation to charity €847, i.e. €500 x (100 ÷ 59)
Tax associated with the donation €847.46 - €500) = €347.46
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