Companies can also help
Understand the donations made to OSCIP, and the tax deduction basis
1. Concept
1.1. With the objective of extending the OSCIPs – Civil Society Organizations of Public Interest, the benefits already conferred on non-profit entities of public interest, enabling them to raise funds for the development of their activities, the donors (subject to the calculation system for real profit) the possibility of deducting the amount donated as an expense up to the limit of 2% of the company’s operating profit.
1.2. The possibility of deducting the donated amount as an expense (limited to 2% of operating profit) generates a reduction in the amount subject to the incidence of Income Tax, Income Tax and Social Contribution on Profit, allowing its donors to recover part of the donated amount .
1.3. In this way, the company that donates resources to an OSCIP can make the deduction referring to the year in which it has donated, and it is not necessary to request prior authorization from the Federal Revenue, requesting, in return, a receipt issued by OSCIP for which the entity undertakes to apply fully the resources received in the cultural activities developed by it.
2 – Donation and Tax Deduction – Legal Basis
2.1. The deductibility of donations is provided for by Provisional Measure No. 2,158-35, of August 24, 2,001, whereby the status of beneficiaries of donations was extended to OSCIPs that provide their donors with a tax incentive consistent with a discount of up to 2% of their profit operating, previously established by Law No. 9,249 / 95.
2.2. Thus, based on the legal provisions indicated above, as of the 2002 financial year, companies that donate resources to OSCIPs will have the possibility to deduct the amount donated in up to 2% of their operating profit, being understood as operating profit the result of the main or ancillary activities that constitute the object of the legal entity, benefiting, on the other hand, from the reduction of the calculation base of the taxes levied on the real profit.