Charities tax rate

[dewdrop]

Yesterday Irish Examiner had a list of the income of Charities which included some of leading hospitals like St. Vincents and Bons Secours. In view of the sums involved it would appear that these are in reality business operations and am wondering how they are tax as they are labelled as charities

 

[Sunny]

Yesterday Irish Examiner had a list of the income of Charities which included some of leading hospitals like St. Vincents and Bons Secours. In view of the sums involved it would appear that these are in reality business operations and am wondering how they are tax as they are labelled as charities

They are generally exempt from paying tax once they have been granted chartiable status.

 

[huskerdu]

They are generally exempt from paying tax once they have been granted chartiable status.

But what taxes ?

Charities pay VAT as normal.
Employees of charities are treated the same as other empolyees from a tax perspective
They do not generate any profits for shareholders or owners, so corporation tax is not applicable.

Are there any other taxes where charities are treated differently to other organisations.

 

[WindUp]

CGT
DIRT
Stamp Duty

 

[Sunny]

But what taxes ?

Charities pay VAT as normal.
Employees of charities are treated the same as other empolyees from a tax perspective
They do not generate any profits for shareholders or owners, so corporation tax is not applicable.

Are there any other taxes where charities are treated differently to other organisations.

Some of them do generate 'profits' although that is probably not the appropriate word. They are obliged to produce accounts just any other company. Charities will often earn more money through donations than they pay out in a given accounting period and have retained earnings. These 'profits' are not taxed.

Charities also don't any DIRT tax and they don't pay witholding tax.

 

[huskerdu]

Thanks, I had not thought of those other taxes.

I have no problem with that in principle, if the charity proceeds are used for a good cause and the accounts are public.

It would be a farcical paper exercise for a hospital, being funded by the exchequer and private donations from the public to be paying tax if it had a surplus or bank deposits.

There are major problems due to the unregulated nature of our charity sector.
I have been banging on about this for years and I (naively) hope that the current crisis will force the Gov to do something about this.