Bill would raise tax deductions for donations to nonprofits

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1. The bill would raise the general tax deduction for donations from 35% to 40%, for both individuals and companies. It would also increase the amount eligible for an 80% deduction from 150 to 250 euros, known as micro-philanthropy.
2. To reward repeat donors, the bill would shorten from 4 to 3 years the period of donations to the same entity needed for a higher rate: 45% under personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. and 50% under corporate tax.
3. The list of activities exempt from corporate tax for nonprofits would expand. It would include, among others, job integration programs for people at risk of exclusion, education for gifted students, and innovation activities.
4. The bill would allow a deduction for lending the use of movable or immovable property without payment, something not previously mentioned. Its value would be based on the lender's expenses during the loan, excluding financing costs.
5. Donors could receive honorary mentions without losing the donation's tax status, as long as the mention has no economic value. The cap would be 15% of the donation's value, and at most 25,000 euros. The bill would also add service provisions and in-kind aid to corporate collaboration agreements.
6. Every three years, the Government would have to submit a report to Congress evaluating the impact of the measures. The law would take effect on January 1 of the year after its publication in the official gazette.

Who it affects

• Individuals who make donations, who would get higher personal income tax deductions.: tax benefit
• Companies and legal entities that donate or collaborate with nonprofits.: tax benefit
• Nonprofit entities, which would see more exempt activities and more private funding.: tax benefit
• Non-residents operating in Spain, with or without a permanent establishment, who could also apply the deductions.: tax benefit

Words worth knowing

Mecenazgo

Private support, usually financial, for activities of general interest such as culture, sports or research.

Deducción fiscal

Tax deduction: an amount subtracted from the tax owed for doing something the law rewards, such as donating.

Exención

Exemption: a situation where no tax is paid on certain income or activities.

Entidad sin fines lucrativos

Nonprofit entity: an organization pursuing a general-interest goal that does not distribute profits to its members.

Base de la deducción

Deduction base: the amount on which the deduction percentage is applied, for example the donated amount.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text passed by the committee. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries