Approvals - Deeds of Covenants
Introduction
A tax deduction is allowable for an individual or company who makes payment(s) to a Charitable Body/Institution/Fund by means of a Covenanted Donation. This deduction is equal to 15% of Total Income. (Companies and Individuals)
Covenanted Donation means
Payments made to a charity under a deed of covenant in favour of -
(i) a sporting body of persons as Defined in Section 6(2) of the Corporation Tax Act and approved by the President in writing;
(ii) an ecclesiastical, charitable or educational institution of public character approved by the President in writing;
(iii) the Children's Life Fund established under the Children's Life Fund Act 2010
CHECKLIST FOR DEED OF COVENANT.
There are two parties to the Deed of Covenant, the Donor – the Donating Company or Individual and the Donee – the Receiving Company.
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The 6” space at the top front cover of the Deed must be left blank for IRD purposes only.
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The receiving organization must be a registered Charitable Institution with the Ministry of Finance/Board of Inland Revenue.
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The Board of Inland Revenue (BIR) File Number should be correct. There should be no abbreviation of names, addresses or dates on the Deed of Covenant.
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All changes and alterations to the Deed must be initialed by the Donor or someone in authority from Charitable Organization.
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There must be a witness to the deed.
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Witness must state their address and occupation.
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Receiving Organization must place their official stamp or seal on the Deed.
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Donor (in cases of a company) must place their official stamp on the Deed.
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All names are to be written in BLOCK LETTERS, along with job position of everyone included.
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Deed must be filled out in BLACK INK.
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Deed must be done in triplicate, three original.(NO photocopies)
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Annual amounts and period should be WRITTEN OR TYPED IN WORD FORM.
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Must be done on legal size paper.