Nonprofit Legal Entities
Legal entities and special trust funds without legal personality that exclusively and irrevocably pursue charitable purposes within the meaning of Art. 107, para. 4a of the PGR without the intent to make a profit are exempt from taxation upon application.
The provisions regarding charitable institutions are set forth in Art. 4, paras. 2 and 3, of the Tax Act, as well as in the corresponding provisions of the Tax Ordinance.
Starting in 2026, tax-exempt nonprofit legal entities and trusts must submit the documents required annually by the Fiscal Authority electronically.
Tax-exempt charitable foundations and institutions with an auditing body pursuant to Art. 552 § 27 PGR must submit the following to the Fiscal Authority (Art. 3(2)(a)(1) and (2) SteV):
• the report or confirmation from the auditor pursuant to Art. 552 § 27(4) PGR;
• the audited annual financial statements or report pursuant to Art. 21(2) of the Tax Act.
If these institutions hold a majority stake in a company, they must also submit that company’s annual financial statements in accordance with Art. 3(2)(a)(3) of the Tax Administration Act.
The documents must be submitted no later than 9 months after the close of business.