Charitable tax exemption

Conditions for retaining charitable tax exemption

Once Revenue grants tax exemption to your charity, it must continue to:

• remain tax compliant
• maintain its charitable status with the Charities Regulator
• comply with the Charities Act 2009
• use all income for its main charitable purpose only
• and
• keep proper records and accounts.

In addition, your charity must also:

• keep audited accounts if your annual income is over €250,000
• notify the Charities and Sports Exemptions Unit of any change of details
• and
• request prior approval from the Charities and Sports Exemptions Unit if you intend on accumulating funds for more than two years. This should include the reasons for the accumulation.

You should submit all documentation to the Charities and Sports Exemption Unit through MyEnquiries in Revenue Online Service (ROS).

If your charity wishes to trade, you must request approval from the Charities and Sports Exemptions Unit. You should provide a report through Revenue's MyEnquiries facility, stating how trading activity will benefit your charitable purpose. Furthermore:

• your trading profits can only be used for your main charitable purpose
• trading activities should be carried out at the same time as your main charitable purpose
• and
• the beneficiaries of your charity should carry out most of the trading activities.

Revenue may withdraw the exemption if your charity does not comply with these conditions. If this happens, the exemption can be withdrawn from the date it was granted. 

Next: Charities that are dormant or winding up