EURASIA LIFT

Human Rights Issues in Eurasia / Правовые Вопросы В Регионах Евразии

Russian Court Makes Foreign Donations To NGOs Tax Free

Posted by Info on 30/07/2011

The Russian Supreme Arbitration Court has freed non-governmental organizations from paying a tax on the donations they receive from foreign foundations. The tax officials wanted to levy a 24 percent profit tax on such donations.

The court case started in 2009 after tax inspectors from the Russian internal republic of Tatarstan tried to levy a 700 000 rubles (about $25 000) profit tax on the Russian trans-regional human rights association Agora for two separate donations they had received from the US Endowment for Democracy and the TIDES foundation. Together with the fines, the sum owed reached some 1.2 million rubles.

Two previous court rulings had favored the tax inspectors, prior to the Supreme Arbitration Court’s decision to apply the principle of singularity as it corresponds with legal norms.

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