Non-Profit Organisation

Any entity is considered a Non-Profit Organisation if it is established and operated in its jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its jurisdiction of residence and it is a professional organisation, business league, chamber of commerce, labour organisation, agricultural or horticultural organisation, civic league or an organisation operated exclusively for the promotion of social welfare; Additionally the entity must fulfil the following conditions:

• the entity is exempt from income tax in its country of residence;

• the entity has no shareholders or members who have a proprietary or beneficial interest in the income or assets of the entity; the applicable laws of the entity’s country of residence or the entity’s formation documents do not permit any income or assets of the entity to be distributed to, or applied for the benefit of, a private person or non-charitable entity.

  An exception is made for income or assets used:

  • pursuant to the conduct of the entity’s charitable activities,
  • as payment of reasonable compensation for services rendered, or
  • as payment representing the fair market value of property which the entity has purchased.

• The applicable laws of the entity’s country of residence or the entity’s formation documents require that upon the entity’s liquidation or dissolution, all of its assets be distributed to a Governmental Entity or other Non-Profit Organisation.