Exemption Amount for Beneficial Purposes

The allowance for favored purposes enables non-profit, charitable, or church-related entities throughout Austria to deduct up to €10,000 annually from their taxable income. This tax relief aims to promote socially meaningful activities and create liquidity leeway for social or church projects. Eligible are legal entities within the meaning of § 5 Z 6 KStG 1988, provided they exclusively pursue non-profit, charitable, or church-related purposes. The measure underscores the objective of supporting civil society engagement through tax incentives and providing sustainable impetus for welfare and church institutions.

The claim of the allowance is made via the annual corporate tax return, which must be submitted by April 30 of the following year; if submitted electronically via FinanzOnline, the deadline is extended to June 30. If the corporation meets the formal requirements, it can directly apply the deduction without a separate application. Unused amounts can be carried forward within the legally defined accumulation periods of up to ten years. The regular corporate tax return (Form K2) suffices as the required document. This continuously available funding option facilitates long-term financial planning and fosters confidence in stable framework conditions. Through its straightforward handling, the regulation strengthens non-profit organizations and contributes to securing their social, charitable, or church-related missions.