Approvals - Deeds of Covenants 

Tags: pos, VICTORIA COURTS, individual, business, sole-trader, pensioners, self-employed, Employee, Banks, Insurance Co., Petroleum Co.

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.

  1. The 6” space at the top front cover of the Deed must be left blank for IRD purposes only.

  2. The receiving organization must be a registered Charitable Institution with the Ministry of Finance/Board of Inland Revenue.

  3. 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.

  4. All changes and alterations to the Deed must be initialed by the Donor or someone in authority from Charitable Organization.

  5. There must be a witness to the deed.

  6. Witness must state their address and occupation.

  7. Receiving Organization must place their official stamp or seal on the Deed.

  8. Donor (in cases of a company) must place their official stamp on the Deed.

  9. All names are to be written in BLOCK LETTERS, along with job position of everyone included.

  10. Deed must be filled out in BLACK INK.

  11. Deed must be done in triplicate, three original.(NO photocopies)

  12. Annual amounts and period should be WRITTEN OR TYPED IN WORD FORM.

  13. Must be done on legal size paper.

Sample of Deed of Covenant

Where is it available?

This service is available at the following locations