All donations to Pacific Games eligible for 200 per cent tax deduction
In-kind sponsorship and government bodies are all eligible for the 200 per cent tax deduction on Pacific Games sponsorship.
That's the opinion of the National University of Samoa Lecturer on Economics and Tax, Savaiinaea Tamaleta Taimang.
Speaking to the Samoa Observer, he said all sponsorship, including non-cash sponsorships, are eligible to claim 200 per cent of their donations back in taxes at the end of the fiscal year.
The Pacific Games announced the 200 per cent tax return incentive last June, when Parliament approved the incentive to help sponsors sign up.
Savaiinaea said when it comes to donations, they are not considered taxable.
The idea is to encourage businesses and individuals to make donations either to charity or the organisation of their choice.
When it comes to the Pacific Games, the Government needed to mobilise funds, and quickly as they took on the Games last minute following Tonga’s withdrawal.
So with that 200 per cent tax deduction, sponsors will get twice what they paid in sponsoring the Games back at the end of the year.
The Pacific Games intends to win enough sponsorship to match the Government’s contribution of $11 million, and they have nearly succeeded with close to $8 million gathered already.
If they can hit their target, Government can expect to pay out $22 million in tax returns to the nearly 20 businesses who have put their money behind the Games.