Press Release: Direct taxation: The European Commission requests Estonia to end discrimination of foreign charities

The European Commission sent Estonia a formal request to end the discriminatory treatment of donations to foreign non-profit organisations and foundations (charities). Estonia allows tax relief for donations to charities, but only if they are established in Estonia. Donations to foreign charities are excluded from any relief. The Commission's request took the form of a ‘reasoned opinion’ (second step of the infringement procedure of Article 226 of the EC Treaty). If Estonia does not reply satisfactorily to the reasoned opinion within two months the Commission may refer the matter to the European Court of Justice.