As of January 1, 2024, tax deductions will be applied to individuals or companies that donate to NGOs or non-governmental organizations. non-profit organizations Cultural, sporting, scientific or other types will be more generous. He reached an agreement with political groups for treasury reform. patronage law which will take shape at the Congress of Deputies this Thursday. Financial Commission Presentation From the Prensa Ibérica group, parliamentary sources and the Government gave approval to EL PERIÓDICO on tax regime reform of non-profit organizations as they move forward. processing of this bill submitted by PDCat At the end of 2020, it has been stuck in Congress since May 2021, two years ago. Now he’s cleared the stalemate and may pass his process in Congress next week to pass it to the Senate.
donations from individuals
Currently, natural persons are tax deductible. income statement 80% of donations under 150 Euro and 35% of amounts exceeding this amount. Treasury will expand according to the reform expected to be announced this Thursday at 250 Euros The donation that will entitle and increase the personal income tax by 80% from next January 1 from 35% to 40% Bonus for amounts exceeding the first slot. For repeated contributions to the same NGO or organization in successive years, this second deduction of 40% will be 45% from the third year. In total, bonuses cannot exceed 10% of the taxpayer’s tax base. An example: if a person donates 300 Euros to an association for the fight against cancer, they are entitled to a 172.5 Euro deduction according to current regulations; with the reform this bonus will increase to 220 euros (47 euros more)
company donations
Also, as announced by EL PERIÓDICO, the new law from 35% to 40% cuts that companies can apply Corporation tax for their donations to non-profit organizations or cultural, sports, social or scientific organizations. In these cases, the deduction limit will be increased from next January 1st. from 10% to 15% of the tax base on corporate tax, as parliamentary sources familiar with the deal explain. Also here, companies that make recurring contributions will receive a reward on their deduction: they can be deducted instead of 40% from the third year. 50% of donations practical An example: If a company donates one million euros worth of art to a museum, the deduction will increase from 350,000 euros to 400,000 euros.
Another innovation that the new law will bring is the patronage discount of companies, services provided to organizations quotes from nonprofit “If an architect selflessly carries out a project for Liceo, the equivalent amount can be deducted from tax after signing an agreement with the beneficiary organization”, comor sample A parliamentary source familiar with the deal accepted by the Treasury.
It will be possible to receive compensation
In addition, it includes the possibility of receiving reforms. some form of compensation for donations, limited to 15% of the donation amount and always below 25,000 Euros. The same source states, “If a company or individual donates to the Prado Museum, they can get a free ticket, for example, up to 15% of the donated amount, or 25,000 Euros.” .
‘Crowdfunding’ is not successful
While all these improvements to the patronage tax regime did not reach the most ambitious proposals that the PDCat parliamentary group embodied in the bill, they do represent an improvement over the current model. Additionally, recognition of what is known as the first text ‘fell’ “crowdfunding” through digital crowdfunding platforms that offer 100% deductions for their contributions.
Fast parliamentary action
Reform of the protection law is one of the aspirations of the Minister of Culture. Michael Iceta, for this legislature. If political groups do not change their vote, which they voiced at the plenary of Congress in March 2021, reform could continue next week in 2021. finance commission, with full legislative power, goes to the Senate with the votes of the PSOE, Unidas Podemos, Vox, ERC, Ciudadanos, Mixed Group and Plural Group. In May 2021, PP voted against the PDECat proposal, while PNV and Bildu abstained. Once in the Senate, the process could be delayed until June or July, as the call for regional and local elections on May 28 interrupts parliamentary activity in the legislature. Reform It will enter into force in 2024, For donations from 1 January.