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Practical manual for Income Tax 2024. Volume 1

Example: Deduction for donations made to entities included in the scope of Law 49/2002

Mr. SMA has made the following donations:

  • To the NGO “TT” included in the scope of Law 49/2002 to which they had not previously made any donation, the amount of 1,000 euros in 2024 .

  • To the “XX” foundation included in the scope of Law 49/2002 to which the following donations have been made since 2021 for priority patronage activities:

    Financial year 2021 2022 2023 2024
    Donation 500 euros 700 euros 1,000 euros 1,000 euros

Determine the amount of the donation deduction that corresponds to you in 2024 .

Solution:

Deduction base (1,000 + 1,000) = 2,000

Amount of the donation deduction = 1,000

Breakdown of amounts:

  1. Donations to the NGO “TT”

    (1,000 euros) (1)

    250 euros at 80% = 200

    750 at 40% = 300

  2. Donations to the “XX” Foundation

    (1,000 euros) (2)

    1,000 euros at % =

    Total (200 + 300 + 500) = 1,000

Notes to the example:

(1) The percentages provided for in Article 19 of Law 49/2002 for donated amounts are applied to the 1,000 euros donated for the first time to the NGO “TT” that have not been allocated to priority patronage activities and programs. Please note that the amount of the first section of the deduction base, to which the 80% percentage is applied, has been increased from 150 to 250 euros. Likewise, the percentage of deduction applicable in general has been increased by five percentage points, from 35% to 40% on the remaining amount. (Back)

(2) The percentage of 50% is applied to the 1,000 euros donated to the “XX” foundation for priority patronage activities and programs. is the result of increasing by five percentage points the percentage provided for in article 19 of Law 49/2002 for cases in which the taxpayer, in the two immediately preceding tax periods, has made donations to the same entity for an amount equal to or greater, in each of them, than that of the previous year (45% + 5% = 50%).

As a new feature, in 2024, and as a consequence of the reduction from 4 to 3 of the number of financial years in which donations must be made to the same entity for an amount equal to or greater than that of the previous financial year, in 2024 only the amounts donated in 2022 and 2023 have been taken into account, not those in 2021 as was the case until December 31, 2023 . (Back)