From January 1, 2026, corporate charitable contributions are deductible only to the extent they exceed 1% of taxable income, with the existing 10% ceiling still applying. Gifts below the 1% floor no longer produce a current deduction.
Home › Founders News › Taxes & Grants
Corporate charitable gifts get a new 1% floor before they are deductible in 2026
Why this matters for founders
If your incorporated startup makes charitable donations, bunch giving into a single year to clear the 1% floor rather than spreading small gifts that now go undeducted.
Source: Carr, Riggs & Ingram
Related updates
More that helps you.
NZ tax bill lets founders keep the favourable FIF method after diluting below 10 percent
New Zealand's Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill was introduced to Parliament on 10 September 2026. It le…
China ends foreign individuals' tax-free dividend exemption; 20% IIT now applies
MOF and the State Taxation Administration issued Announcement 2026 No. 27, repealing the 32-year-old exemption (Caishuizi 1994 No. 20) that let foreign individuals receive dividend…
Simples Nacional firms get Sept 2026 window to choose hybrid IBS/CBS regime for 2027
On 1 September 2026 Receita Federal opened an exceptional window running 1-30 September 2026 for Simples Nacional companies to decide how they will collect the new IBS and CBS taxe…
Receita Federal: window to opt into Simples Nacional moves to Sept 2026
In an official note published on August 19, 2026, Receita Federal confirmed that under Resolução CGSN nº 186/2026 the enrollment window for the Simples Nacional tax regime has shif…
Get briefs like this tuned to you.
In the app, Founder Briefs are personalized to your country, industry and stage, and you can save the ones that matter.
See plans →
Keep exploring
Related across the site
Term409A ValuationAn independent appraisal of a private company's common stock, used to set the strike price for employee stock options in the US.ToolGustoGusto runs full-service payroll for US businesses, handling paychecks, tax filing, and direct deposit, plus benefits, onboarding, and contractor payments. It automates federal, state, and local payroll tax compliance.TermEIN (Employer Identification Number)A unique nine-digit number the US IRS assigns to your business for tax and identification purposes, like a Social Security number for your company.TermLLC vs. C-CorpThe two most common US business structures: an LLC offers pass-through tax and flexibility; a C-corp is standard for raising venture capital.Case studyReginald F. LewisTLC Beatrice InternationalChecklistFile business taxes with TurboTax, soloWalk through a calm TurboTax filing for your business: gather records, claim honest deductions, avoid red flags, and know exactly when a pro is worth it.