Tax being supportive has several rewards: the emotional one of knowing that thanks to your donation you are helping a social and charitable cause, and the economic one in the form of a deduction for donation in the income statement. Yes, donating deducts, and a lot!
Royal Decree-Law 17/2020, of May 5, published in the BOE of May 6, 2020, includes a modification of article 19 of Law 49/2002 that increases deductions for donations to NGOs by five percentage points.
This increase affects donations made by personal income taxpayers and by non-resident income taxpayers who operate in Spanish territory without a permanent establishment. The new deduction percentages apply from January 1, 2020 to donations to entities covered by Law 49/2002, of December 23, on the tax regime of non-profit entities and patronage incentives.
The new deduction percentages are as follows:
- 80% deduction for the first 150 euros donated.
- From that amount, that is, for the amount donated above the first 150 euros:
- Deduction of 35% .
- 40% deduction in the case of regular donations made for at least three years to the same entity for an equal or higher amount.
Did you know that when you make a donation to ASENDHI you are benefiting from tax relief on your annual income statement?
- People or companies that pay taxes in the Basque Country or in Navarra will be governed by their own Fortress Tax Relief system.
- Only people who have contributed personal income tax in the fiscal year and are required to file the Income Statement, with a deduction limit of 10% of the taxable base, can benefit from these advantages.
- If you have donated more than €150 for 3 years in a row, the amount must be equal to or greater, in each of them, than the previous year to benefit from the deduction increase indicated.
- If you have donated for 3 years in a row, the amount must be equal to or greater, in each of them, than the previous year to benefit from the indicated deduction increase.
Remember that in order for us to inform the Tax Agency of the amount of your donation, it is essential that you have provided us with your full name, ID or NIF, and address.
CALCULATOR TO DEDUCT DONATIONS TO NGO IN THE INCOME STATEMENT
Donations to NGOs such as Save The Children allow since 2020 to deduct up to 80% of the money contributed. Use the deduction calculator to see how much you can deduct in the Income statement based on the amount you have contributed throughout the year.
REDUCING DONATIONS TO NGOS: 4 THINGS TO TAKE INTO ACCOUNT:
- This deduction has a tax base limit of 10%.
- Does not apply to the Basque Country and Navarra, where the deduction is 20 and 25%.
- If you have donated in the previous 2 years to the same NGO, the amount of tax relief may be higher.
- In the case of partners, this will be your total deduction in the event that you have been collaborating for a year (12 installments). If you have been a member for less than 12 months, your deduction will be proportional to the months in which you have collaborated during that fiscal year.
HOW ARE THE DEDUCTIONS FOR COLLABORATING WITH AN NGO CALCULATED?
DONATIONS FROM COMPANIES TO NGOS, HOW MUCH DO THEY DEDUCT?
In the event that you are a company, you can deduct 40% in the declaration if you have donated in the two previous years or 35% if you have been collaborating for that NGO for less than two years. For example, if you donated €300 in the previous year, you will deduct €120 if you have donaed to Save the Children in the previous two years, and €105 if it is the first or second year that you collaborate with the children’s NGO.
HOW TO MAKE MY DONATIONS TO NGOS APPEAR IN THE DRAFT OF THE INCOME AUTOMATICALLY.