The current legislation undergoes significant adjustments in the field of non-profit organizations and patronage, with the implementation of Book IV of Royal Decree-Law 6/2023, in force from January 1, 2024.
These modifications aim to improve tax incentives for patronage, encompassing both individuals and companies, as well as non-residents.
SPECIAL TAX REGIME FOR NON-PROFIT ORGANIZATIONS
Requirements for Non-Profit Organizations:
Entities seeking general interest purposes, such as animal defense, may be considered non-profit when meeting specific requirements.
Exemptions from Corporate Tax:
Exemption from Corporate Tax is established for income derived from activities such as social services, assistance and social inclusion, education for high capacities, and research, development, and innovation, provided they are carried out in compliance with their objective.
Exemptions from the Tax on the Increase in Value of Urban Land (IIVTNU):
The exemption in IIVTNU for onerous transmissions is conditioned on the lands meeting specific requirements, and non-profit entities are exempt when the legal obligation to satisfy this tax falls upon them.
TAX INCENTIVES FOR PATRONAGE
Tax Regime for Donations and Contributions:
The free transfer of movable or immovable property is introduced as a specific type of deductible donation. Additionally, it is established that donations and contributions will generate deductions as long as the value of received goods or services does not exceed certain limits.
Deductions for Personal Income Tax (IRPF) and Corporate Taxpayers:
Deduction percentages for Personal Income Tax (IRPF) and Corporate taxpayers are adjusted, introducing new limits and conditions. A specific deduction regime is also established for non-resident Income Tax payers.
Tax Regime for Other Forms of Patronage:
Collaboration forms in general interest activities are expanded, including the provision of services. The dissemination of the collaborator’s participation in activities is allowed to be carried out by both the collaborator and the beneficiary entities.
These modifications aim to strengthen the contribution to social and cultural causes, promoting a more active and effective participation in the field of patronage and non-profit organizations. It is crucial for entities and donors to familiarize themselves with these adjustments to maximize the positive impact of their contributions on society.
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