I’m a bit confused here, you are being charged +100% tax on the income you didn’t donate? E.g. didn’t donate 1€ you are taxed e.g. 1€ + say 30% - 1.30€
Donations to humanitarian causes get 65% tax credit, so say €100 donation gives €65 tax credit. And yes still have to pay the other 35% but it is more heart warming to pay more to a charitable body than the fisc. They still get their cut!
Ah, I understand. You receive a tax credit say 65€ not a reduction in your taxable income of 100€ which is then taxed at your marginal income, say 30% so the tax credit is greater than the tax payable. ? Thanks.