Allowances on Charitable Donations

According to the Hungarian tax rules, with effect of 1 January 2010, only the entities subject to corporate tax are entitled to tax allowance in case of support provided with Csodalámpa Foundation (registered as charitable organisation) based on support provided during the tax year as charitable support. The sponsor is entitled to tax allowance if it provides the donation to charitable organisation for support of charitable activity under act on the Freedom of Association, on Public-Benefit Status, and on the Activities of and Support for Civil Society Organizations.

The sponsor is entitled to the following tax allowances:

  • 20% of the support shall be deducted from the pre-tax profit in case of support provided under sponsorship agreement
  • additional 20% of the support can be deducted from the pre-tax profit in case of long-term sponsorship agreement.

Long-term sponsorship means that Csodalámpa Foundation and the sponsor conclude written agreement and the sponsor undertakes to provide during the year of conclusion of the agreement and 3 years thereafter (i.e together 4 years) the support in cash at least once each year, in the same or larger amount, without any consideration.

The 1% Law

This Hungarian "speciality" means, that the taxpayer can direct 1% of his/her previous year's personal income tax, payed in Hungary to a civil organisation of his/her preference.
The Hungarian income tax payers provide about 1/6 of our annual budget through this simple way using their Hungarian tax returns.

We would be greatful if you would donate your 1% to the Csodalámpa by writing our tax number: 18248670-1-43 on the EGYSZA page of yout tax return.

You can read more information about this 1%

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