For nonprofit organizations, donations are one of their main sources of funding, followed by contributions from members and subsidies from other companies, foundations, and individuals, so this change is a breath of fresh air for them.
As of January 1, 2015, Law 27/2014 of November 27 on Corporate Income Tax introduces amendments to Law 49/2002 on the Tax Regime for Nonprofit Organizations and Tax Incentives for Philanthropy. Specifically, through the increase in the applicable deduction rates for donations made by individuals and/or legal entities to foundations covered by the special tax regime.
To summarize some of the key points, the new features include the fact that micro-philanthropy is recognized, whereby individuals can deduct 75% of the first 150 euros donated from their personal income tax.
At the same time, donation loyalty is encouraged for donations made by both individuals and legal entities:
In the case of individuals, they may apply a deduction of 35% (instead of the standard 30%) on amounts exceeding 150 euros donated, provided that they have made donations to the same organization during the previous three years.
In the case of companies, the deduction increases to 40% for donations made to the same organization in the same or a higher amount for at least three years.
Although these are the main new features, the following link provides the full details of everything covered by this amendment to the reform of tax incentives for philanthropy.
We would also like to take this opportunity to thank all the individuals and organizations that have joined the mission of our foundations and their projects, and that have supported and continue to support their development, whose overall aim is to improve society in our country.
Source: Spanish Association of Foundations
Companies will be able to deduct 40% of what they invest in supporting nonprofit organizations.
For nonprofit organizations, donations are one of their main sources of funding, followed by contributions from members and subsidies from other companies, foundations, and individuals, so this change is a breath of fresh air for them.
As of January 1, 2015, Law 27/2014 of November 27 on Corporate Income Tax introduces amendments to Law 49/2002 on the Tax Regime for Nonprofit Organizations and Tax Incentives for Philanthropy. Specifically, through the increase in the applicable deduction rates for donations made by individuals and/or legal entities to foundations covered by the special tax regime.
To summarize some of the key points, the new features include the fact that micro-philanthropy is recognized, whereby individuals can deduct 75% of the first 150 euros donated from their personal income tax.
At the same time, donation loyalty is encouraged for donations made by both individuals and legal entities:
In the case of individuals, they may apply a deduction of 35% (instead of the standard 30%) on amounts exceeding 150 euros donated, provided that they have made donations to the same organization during the previous three years.
In the case of companies, the deduction increases to 40% for donations made to the same organization in the same or a higher amount for at least three years.
Although these are the main new features, the following link provides the full details of everything covered by this amendment to the reform of tax incentives for philanthropy.
We would also like to take this opportunity to thank all the individuals and organizations that have joined the mission of our foundations and their projects, and that have supported and continue to support their development, whose overall aim is to improve society in our country.
Source: Spanish Association of Foundations
