Deductions for donations

16 February, 2018
–
Fiscal
–
Mª José Sorribas


Taxpayers of the Income Tax of individuals, who make donations to foundations or non-profit organizations under the special regime of Law 49/2002, can apply the following percentages to the group of donations made with the right to deduction:

| | |
| --- | --- |
| Donation up to 150 euros | Deduction rate: 75% |
| | |
| Other donations from 150 euros | Deduction rate: 30%\* |

\*If in the two immediately preceding years also donations with the right to deduction have been made to the same entities, for an amount equal to or greater, in each of these years, to the one of the previous year, the reduction may apply 35% (instead of 30%) on the donation made to the same entity, in the part that exceeds 150 euros.

These deductions have a limit, so that the donation made cannot exceed 10% of the taxable base of the tax return on the Income Tax of each individual taxpayer.

Let’s look at some examples:

~ Mrs. Maria has made a donation of 200 euros to a Foundation hosted by the special regime of Law 49/2002, the deduction that can be applied and which will reduce the full quota of her personal income tax return is as follows:

– First 150 euros x 75% = 112.50 euros

– Remaining 50 euros (up to 200 donations) x 30% = 15.00 euros

In this case you can deduct 127.50 euros from the full fee of your tax return.

~ Mr. During the last three years, Joan has made an annual donation of 300 euros to the same Foundation, under the special regime of Law 49/2002, the deduction that can be applied and which will reduce the full amount of his tax return. is the following:

– First 150 euros x 75% = 112.50 euros

– Remaining 150 euros (up to 300 donations) x 35% = 52.50 euros

In this case you will be able to deduct € 165.00 from the full fee of your tax return.

Corporate taxpayers have the right to deduct from their full membership (after deduction of double taxation deductions, bonuses and deductions to encourage certain activities) 35% of the donations made to foundations or non-profit organizations received under the special regime of Law 49/2002.

If in the two immediately preceding tax periods also the right to deduction were made, to the same entities, for an amount equal to or greater, in each of these periods, to the one of the previous year, the deduction may be applied 40% (instead of 35%) on the donation made to the same entity.

In this case, the donation that gives rise to the deduction base may not exceed 10% of the corporate income tax base of the tax period.

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