Tax Incentives for Charitable Giving: Evidence from the Canton of Geneva, Switzerland

Routledge Handbook of Taxation and Philanthropy

17 Pages Posted: 1 Jun 2021

See all articles by Giedre Lideikyte Huber

Giedre Lideikyte Huber

University of Geneva, Faculty of Law

Marta Pittavino

University of Geneva

Henry Peter

University of Geneva

Date Written: May 31, 2021

Abstract

This contribution presents the legal framework of income tax incentives for charitable giving in Switzerland and describes the reform putting this system in place in 2006. Using a unique data set shared by the Tax Administration of the Canton of Geneva for this purpose, we provide descriptive statistics about taxpayers’ charitable giving behaviour in Geneva from 2001 to 2011. In this period, the number of taxpayers deducting charitable contributions significantly increased. In contrast, the size of individual annual deductions (both mean and median) decreases. The data show that the amount of tax deductions for charitable giving sharply increases relative to income class, and the median charitable deduction by taxpayer rises exponentially with income (i.e. years 2001 and 2011). Currently, no clear effects of the 2006 tax reform are visible; however, more in-depth studies are needed in this respect.

Keywords: taxation, tax law, tax incentives, charitable giving, donations, tax policy, tax deduction

JEL Classification: K34, H2, H21, H22, H3, H30, H71

Suggested Citation

Lideikyte Huber, Giedre and Pittavino, Marta and Peter, Henry, Tax Incentives for Charitable Giving: Evidence from the Canton of Geneva, Switzerland (May 31, 2021). Routledge Handbook of Taxation and Philanthropy, Available at SSRN: https://ssrn.com/abstract=3856954 or http://dx.doi.org/10.2139/ssrn.3856954

Marta Pittavino

University of Geneva ( email )

102 Bd Carl-Vogt
Genève, CH - 1205
Switzerland

Henry Peter

University of Geneva ( email )

102 Bd Carl-Vogt
Genève, CH - 1205
Switzerland

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