How much is deducted per donation? Your tax advantages
When you donate or become a member of a Non-Governmental Organization (NGO), in addition to helping those in need, you can receive substantial tax benefits from your help.
When you are a donor or member of AMREF, you join the fight for the human rights of thousands of people who currently depend on your generosity. Next, we explain to you which tax benefits you can apply for.
A tax deduction is a monetary reduction in taxes to be paid, and donations to non-profit organizations are subject to Law 49/2002, of December 23 , on the tax regime of non-profit entities and incentives. prosecutors such as Amref.
Remember, when you prepare your tax deduction, in addition to the advantages at the national level, it is advisable to check if the autonomous community in which you reside contemplates an additional deduction.
Whether you make the declaration as an individual or as a company, you can benefit when you apply for your Personal Income Tax (IRPF) or Corporation Tax (IS) declaration.
The taxfortress deductions that you can benefit from were reviewed and increased in May 2020.
What are the tax advantages after donating to an NGO for individuals? (IRPF declaration and deductions).
As an individual you can deduct 80% of the first €150.
From €150 you can deduct 35%.
If you have donated for 3 consecutive years to the same entity for an equal or higher amount, that tranche rises to 40%.
The deduction is limited to 10% of the tax base.
Therefore, as a donor you can deduct a percentage of your economic contribution in favor of NGOs in the Personal Income Tax (Personal Income Tax). Foundations and associations subject to Law 49/2002 (entities classified by the law in article 16 and provisions 5, 6, 7, 9 and 10 and the consortia referred to in article 27.2 second): 80% deduction for first 150 euros donated.
From that amount, donations will be deductible at 35% or 40% if they are regular donations made for at least three years to the same entity for an equal or higher amount. The deduction is limited to 10% of the taxable base.
Companies (IS declaration). How much do you deduct from your donation as a company?
As a company you can deduct 35% of what you donate.
If you have donated for 3 consecutive years an amount equal to or greater than 40% to the same organization.
The amounts not deducted can be applied in the tax periods that conclude in the 10 immediate and successive years.
The deduction is limited to 10% of the tax base.
In other words, the tax benefits for legal entities that have donated to NGOs may give rise to quota tax deductions to the extent that the entity receiving the donation has opted for the special tax regime of Law 49/2002 of tax regime for non-profit entities and tax incentives for patronage. The percentage of deduction in quota in the Corporate Tax is 35% (with a limit of 10% of the tax base). This deduction increases to 40% for donations made to the same entity for the same or greater amount for at least three years. The amounts not deducted can be applied in the tax periods that conclude in the 10 immediate and successive years.
Inheritance / Donations
1. Taxable event
5. Reductions on the Tax Base
9.Adjusted tax rate
10.Liquid quota: Bonuses and Deductions
3. Common deductions for Inheritances and Donations
11. Assignment of the tax quota
12. Settlement of the tax
13. Submission period
14.Place of payment
15. Place of presentation
17. Specific regulations
IMPORTANT.- The liquidation of the Inheritance and Donations Tax in its Inheritance modality requires the prior completion of procedures and obtaining documentation by the taxpayer. The following links provide the necessary information on these procedures and documentation .
1. TAXABLE EVENT
Inheritance and Donation Tax is levied on increases in assets obtained for profit by natural persons.
It constitutes the taxable event of the tax:
The acquisition of assets and rights by inheritance, legacy or any other succession title (acquisitions mortis causa).
The acquisition of goods and rights by donation or any other legal transaction free of charge “inter vivos” (Inter vivos acquisitions free of charge).
The perception of amounts by the beneficiaries of life insurance contracts, when the contracting party of the insurance is a person other than the beneficiary.
IMPORTANT: The value of the assets or rights subject to the taxable event must be declared on the accrual date. The General Directorate of Taxes of the Autonomous Community of Extremadura, through its Tax Portal, makes available to taxpayers a valuation service for certain assets (real estate and used vehicles):
Property valuation tool.
The information provided will not prevent subsequent administrative verification but, when the taxpayer has followed the criteria stated by the Tax Administration, they will not incur any type of responsibility.
2. PASSIVE SUBJECT
In acquisitions due to death (inheritances, legacies or any other succession title), the assignees (heirs and/or legatees).
In donations and other comparable “inter vivos” transmissions, the donee or favored by them.
In life insurance in the event of death of the insured, the beneficiaries, when the person who contracted the insurance was different from the beneficiary.
Acquisitions or receipts obtained by legal entities are not subject to this but are subject to Corporation.
Subsidiary managers. They will respond subsidiarily for the payment:
Officials: In the event that the change of taxable person of any tax is authorized when such change implies an acquisition taxed by Inheritance and Gift Tax and payment of the same has not previously been required.
Financial Intermediaries: In the cases of “Mortis causa” transmissions of deposits, guarantees, etc., when they have delivered the money and securities deposited or returned the constituted guarantees.
Mediators: For the transmission of securities that are part of the inheritance.
Insurance entities: for the delivery of amounts to those who are beneficiaries (either heir or a different person designated in the contract).
In acquisitions due to death and in life insurance. The accrual occurs on the day of the death of the deceased or the insured or when the declaration of death of the deceased becomes final in accordance with the Civil Code. However, in the acquisitions produced during the life of the deceased as a result of succession contracts and agreements, the tax will accrue on the day that said agreement is caused or celebrated.
In donations and other comparable “inter vivos” transmissions. The accrual occurs on the day the contract involving a lucrative transfer “inter vivos” is formalized or entered into.
Any acquisition of assets whose effectiveness is suspended due to the existence of a suspensive condition, a term, a trust or any other limitation, will always be understood to have been carried out on the day that said limitations disappear.
4. TAXABLE BASE
In acquisitions due to death (inheritance, legacy or any other succession title). The Tax Base is made up of the net value of the assets and rights of the individual acquisition of each taxpayer, understood as the value of the assets and rights less charges, debts and expenses that were deductible.
In donations and other lucrative transmissions “inter vivos”. The tax base is made up of the net value of the assets and rights acquired by the taxpayer, this being its value less the charges and debts subject to deduction.
In life insurance. The tax base is made up of the amounts received by the beneficiary. The amounts received for this concept will be added to the rest of the assets and rights that make up the hereditary estate when the deceased is, at the same time, the contracting party of the individual insurance or the insured of the group ins