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There are deductions for donations to NGOs, both in the Income Tax of Physical Persons (IRPF) and corporation Tax (IS). To do this, the donor (individual or institution) must contain the tax certificates of the NGO. The amount of the deduction varies according to the tax regime that is subject to the organization with which you collaborated. You can use this Income Tax Return Calculator.
The percentages of deduction have been increased in may of 2020 at five percentage points for donations made by taxpayers of TAX and by taxpayers of the Tax on the Income of Non-Residents that operate in Spanish territory without a permanent establishment. It is applied to donations made to entities under the Law 49/2002, of 23 December, on the tax regime for non-profit organizations and the incentives for patronage. This increase has taken effect from 1st January 2020.
Note: These new deduction percentages shown in the Income Tax Return Calculator will be applied in the 2020 income tax return.
In addition, you must keep in mind if your autonomous region is subjected to a foral regime in particular or if you have additional deductions. If the activity in which you have collaborated has been classified as a priority activity of patronage by the Law 49/2002, you may be entitled to a higher percentage of deduction.
Deductions in the personal income TAX:
- Foundations and associations subjected to the law 49/2002 (entities qualified by law in article 16 and provisions, 5th, 6th, 7th, 9th, and 10th and consortia referred to in article 27.2 second): deduction of the 80% for the first 150 euros donated. From that amount, donations will be deductible at the 35% or 40% if this is a recurring contribution made for at least three years to the same entity by an amount equal to or higher. The deduction has a limit of 10% of the taxable bases of the tax.
- Foundations and associations declared of Public Utility not subject to the law 49/2002 (art. 69.3 R. D. Legislativo 3/2004 of the consolidated text of the Law on income TAX): a deduction of 10% of the amount of the donation, with a limit of 10% of the assessed base, in the case of foundations.
- Associations that are not declared of Public Utility: there are no deductions for donations to these entities.
Deductions in corporate tax:
- Donations to NGOs are not tax deductible in the corporate income Tax. However, that may give rise to tax deductions in fee to the extent that the receiving entity of the donation (foundation or association of public utility) can and has opted for the special tax regime of Law 49/2002 on the fiscal regime for non-profit organisations and tax incentives for patronage.
- The percentage of deduction in quota in the corporate income Tax is 35% (with the limit of 10% of the taxable base). This deduction is increased to 40% for gifts made to the same entity for the same or a higher amount for at least three years. The amounts not deducted may be applied in the tax periods that conclude in the 10 years immediate and successive.
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