Irish Tax Legislation provides for sporting bodies to reclaim tax from The Revenue Commissioners on behalf of the donor. For PAYE workers, who contribute a minimum of €250 per annum, this contribution is paid from after-tax income and it is this tax payment that is reclaimed by the sporting body.
It costs the donor nothing extra but provides a huge benefit to the club.
Ballygarrett Realt Na Mara GAA Club has been recognised by the Revenue Commissioners as an approved sports body and the Development Works have been accepted as an Approved Project.
How it works
An individual for this purpose means: • A person who pays tax under the Pay As You Earn (PAYE) system only • And is NOT jointly assessed with a spouse or civil partner that pays tax under self-assessment You cannot claim the tax relief if an individual: • Pays tax under PAYE and is jointly assessed with a spouse or civil partner paying tax under self-assessment.
Examples of how the rebate scheme works: PAYE Individual Example: Donation of €250 to Ballygarrett Realt Na Mara in any tax year (i) If in 2021, the individual paid tax at the standard rate of 20%, the donation of €250 is 80% of the total donation. To calculate the relief, the total donation is grossed up as follows (€250/80) x 100 = €312. In this instance, the refund amount that can be claimed by the club is €62 on top of the €250 donation. (ii) If in 2021, the individual paid tax at the higher rate of 40%, this means that the donation of €250 is 60% of the total donation. To calculate the relief, the total donation is grossed up as follows (€250/60) x 100 = €416. In this instance, the refund amount that can be claimed by the club is €166 on top of the €250 donation. A club officer will assist you with completing the 1-page form. https://www.revenue.ie/en/companies-and-charities/documents/form-spr-1.pdf Self-Employed Taxpayers This category can claim relief on the amount themselves: • Donation to club for example: €250 • Tax Relief to donor: €100 • Actual Cost to donor: €150
Companies The company is allowed to claim a deduction for the donation as a trading expense. Example: Donation to club - €500. The cost of that donation to a company that pays 12.5% is as follows: • Tax relief to donor: €63 • Actual cost to donor: €437
Same rules apply if additional bricks or blocks are purchased.