- Tax Benefits for Food Donors: The new regulations allow donors, including public and private entities involved in food production and distribution, to receive a full deduction of value-added tax (VAT) on the acquisition of donated food items, incentivizing food donations for human consumption.
- Corporate Income Tax Deductions: Donors can also benefit from a corporate income tax deduction for food donations, limited to the lower of 2% of their gross income for the fiscal year or 5% of their taxable net income from the previous fiscal year, promoting corporate social responsibility.
- Compliance Requirements: To qualify for these tax incentives, entities must register with the General Tax Directorate, comply with National Food Safety Regulations, enter collaboration agreements with registered intermediaries, and properly document donations through specific vouchers or receipts indicating the tax benefits.
Source EY
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