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Incentives From Supporting Flying Fijian In 2015 Rugby World Cup

This weekly feature with Fiji Revenue and Customs Authority is for better understanding of our tax policies, how they work and why they are important. The 2015 Rugby World Cup
12 Sep 2015 09:40
Incentives From Supporting Flying Fijian In 2015 Rugby World Cup

This weekly feature with Fiji Revenue and Customs Authority is for better understanding of our tax policies, how they work and why they are important.

The 2015 Rugby World Cup is less than a week away now.

And being a sporting nation, we do not lack fans who wholeheartedly support the Flying Fijians.

While some restrict their support to cheers and praises, there are other more generous people and organisations who show their support in monetary terms.

But did you know there is also a tax incentive for those supporting the Rugby team for the World Cup 2015?

Any cash donation made by a taxpayer to the Fiji Rugby Union for the team’s participation at this Rugby World Cup will be allowed a 150 per cent deduction.

Let’s hear more from Fiji Revenue and Customs Authority chief executive, Jitoko Tikolevu, on this subject.

Is there an incentive for those supporting the Fiji Rugby team for the World Cup 2015?
Yes, any cash donation made by a taxpayer to the Fiji Rugby Union for Fiji’s participation at the 2015 Rugby World Cup will be allowed a 150 per cent deduction.
For example if a person donates $10,000 to the Fiji Rugby Union for Fiji’s participation at the 2015 Rugby World Cup, the person will be allowed $15,000 as a deduction against the gross income.
How does the incentive work so that a person gets a deduction?
All cash donations for the 2015 Rugby World Cup should be deposited in a bank and account assigned by the Fiji Rugby Union.  Upon receipt of the cash donation, the Fiji Rugby Union will issue a certificate and a receipt.
The person making the donation will be required to attach a copy of the certificate and receipt to the persons Return of Income upon lodgement at the end of the financial year.

Is there a minimum amount that a person has to donate to qualify for the incentive?
No there is no limitation, and the incentive is open to anyone who wants donate cash to assist in Fiji’s participation at the 2015 Rugby World Cup.
Unlike most tax incentives where there is a minimum contribution to qualify for an incentive, the cash donation towards the 2015 Rugby World Cup does not have any minimum contribution.
This means that whatever a person donates, a 150 per cent of the cash donation will be allowed as a deduction.

How about overseas companies that may want to donate cash?
If they lodge a return here in Fiji, they will be entitled for the 150 per cent deduction on the cash donation that they make towards Fiji Rugby Union for the 2015 Rugby World Cup.

What happens if a person wants to donate sporting gear to the Fiji Rugby Union for the same purpose?
Any non-cash donations such as the supply of sporting equipment by the donor will not be considered in this incentive.

What is the process of getting this deduction for general sports?
All cash donations for the 2015 Rugby World Cup should be deposited in an account with the Office of the Prime Minister.
Upon receipt of the cash donation, the Office of the Prime Minister will issue a certificate and receipt of proof that the money has been received.  A copy of the certificate and receipt will need to be attached with the Return of Income upon lodgement.

Is the donation by sponsors a tax rebate or tax deduction?
It is a Tax Deduction.  The incentive is a 150 per cent tax deduction which will be granted to the taxpayer (company) making the sponsorship to FRU. The 150 per cent tax deduction will be effected once they lodge their tax return at the end of their financial year.

Are there any documentation that needs to be provided to sponsors for accessing their tax benefit entitlements?
They will to attach a copy of the certificate and receipt to their Return of Income when lodging.  FRCA will also do third party checks to verify the cash donations.

Tax Deduction on Sports Sponsorship

There is a deduction of 150% of the amount of cash donation exceeding $50,000 made by a business to a Sports Fund for the purposes of sports development in Fiji. In this incentive, any person who provides cash donation exceeding $50,000 will be allowed a 150% tax deduction for sports sponsorship.  This cash donation will be directed to the development of sports in Fiji.  This includes soccer, volleyball, netball etc. This incentive will not apply if cash donation does not exceed $50,000.

Tax incentive sponsorship for hiring of International Sporting Coaches

A 150% tax deduction will allowed for sponsorship exceeding $100,000but not exceeding $200,000 towards the hiring of international sporting coaches.  In this incentive any sponsorship less than $100,000 or excess above $200,000 will not be considered as a deduction under the hiring of international sporting coach incentive.

 

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