If you make a donation of €250, the approved body is deemed to have received a gross donation. The gross donation is calculated as follows:
€250/(100%-31%)=€362.32. The approved body can claim a refund of €112.32 which is €362.32x31%.
The €112.32 is a Pay As You Earn (PAYE) tax refund now donated to the charity.
Any further PAYE tax refunds available to claim by you for the year of the donation will exclude this amount. This includes, but is not limited to, claims for:
- Health Expenses
- Rent Tax Credit
- relief for Additional Voluntary Contributions (AVCs).