Tax treatment of Nonprofit Organizations

According to the ministerial circular 1059/2015, gross income for Nonprofit Organizations, which is taxable is the one that comes from a business activity (e.g. public performance, newspaper publishing, film projection, rent, interest on deposits, etc.).

On the other hand, members’ subscriptions as well as grants, donations which are considered as capital inflows, i.e lacking the conceptual features of income, do not fall under the concept of gross income to be taxable. Finally, the amount of grants provided to them for carrying out activities carried out by these entities reduce their cost.

Nonprofit Organizations are not exempt from business tax at the end of their fiscal year of establishment and of all the next years.

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