Donating to charity is a win-win!
The Canadian government gives generous tax incentives to both individuals and businesses when they donate to a registered charity.
For individuals, the incentive comes in the form of a non-refundable tax credit. This means it reduces the tax amount you owe (but doesn’t give you a refund if you don’t owe anything). In Manitoba, the tax credit for the first $200 of donations is the lowest personal tax rate (25.8%). For donations above $200, the rate is the highest personal tax rate (46.4%).
For businesses, the donation amount reduces the company’s taxable income, which in turn reduces their taxes owing.
As part of our tax services, we can give you advice on how the exceptions and rules apply to you and how to optimize your donations.
Visit the link to CRA's website to learn more.
