May 27, 2013
Ottawa, Ontario — Today, the Honourable Julian Fantino, Minister of International Cooperation, and the Honourable Gail Shea, Minister of National Revenue, drew attention to important new tax measures announced in Economic Action Plan 2013 that are designed to encourage greater generosity by Canadians through donations to registered charities both in Canada and abroad.
"All Canadians can make a difference to the developing world through their generosity, and this new tax credit encourages greater Canadian generosity in ways that help the world's most vulnerable people," said Minister Fantino. "This innovative tax credit can be applied to donations to Canadian registered charities working in developing countries to reduce poverty and respond to humanitarian emergencies."
As part of Economic Action Plan 2013, the Government of Canada has put in place a new First Time Donor's Super Credit (FDSC), a temporary supplement to the existing non-refundable tax credit for charitable donations by individuals.
"Canadians have a long and proud history of giving generously to those in need," said Minister Shea. "We encourage first-time donors to take advantage of this credit and give to registered Canadian charities that are making a difference both at home and abroad."
The FDSC effectively adds 25 percent to the rates used in the calculation of the existing credit for up to $1,000 of monetary donations. As a result, a first-time donor will be allowed a 40-percent federal tax credit for donations of $200 or less, and a 54-percent federal tax credit for the portion of donations of more than $200, but not exceeding $1,000. The new credit can be claimed once in the 2013–2017 tax years.
Information on registered Canadian charities can be found on the Canada Revenue Agency website.
Economic Action Plan 2013 affirms Canada's commitment to international development as Canadians are committed to delivering significant, life-changing results for people in need. The new Department of Foreign Affairs, Trade and Development will maintain the mandate of poverty alleviation and will achieve greater efficiency, accountability, and focus to continue to improve the lives of people in need around the world.
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