Tax benefits of collaborating with NGOs in personal income tax
Posted: Sun Dec 22, 2024 4:49 am
If we have not made any donations in 2014 , we cannot deduct them from our 2014 tax return, but we can start thinking about the social work carried out by NGOs in our 2015 tax return and make some kind of donation. It is important to know that donations to NGOs are tax deductible by 25% of the value of the contribution from personal income tax and corporate tax, so that apart from contributing to a good cause, we can deduct the amounts contributed from said taxes.
In order to enjoy this right, the donor must have a certificate issued by the NGO , but since NGOs communicate the donations received, it is normal that these are already reflected in the income tax return or in the tax data provided by the Tax Agency.
It is therefore important that the information sent to the NGO for the issuance of the corresponding certificate is complete and up to date, and must contain the name and qatar email list surname in the case of natural persons and the company name, NIF or CIF and updated address.
General deductions for donations in the personal income tax in the 2014 income tax
Donations to NGOs are limited to 10% of the taxable base (art. 68.3 Law), and donations made in accordance with the following deduction modalities must be included in the income tax return:
Donations to beneficiary entities of patronage with the right to a 25% deduction , except for priority programs whose deduction will be 30 percent, with a limit of 15 percent of the taxable base. The donations included here must meet the requirements set out in Law 49/2002.
Donations to other entities not included in the scope of Law 49/2002. This section will record the amounts donated to the entities listed below, when they do not meet the conditions and requirements to be included in the previous section:
Legally recognized foundations that are accountable to the corresponding protectorate body.
Associations declared of public utility.
The joint base of the deductions for donations in their different forms may not, in general, exceed 10% of the taxable base for the year.
Changes from 2015 onwards in deductions for NGOs
Since January 1, 2015, the tax deduction for donations (Article 19 of Law 49/2002 on Patronage) to non-profit organizations has been increased, as follows:
The first €150 donated (in all donations made as a taxpayer in the fiscal year) will be tax deductible by 50% in 2015 and 75% in 2016.
If the donation is equal to or greater than the donations made in 2013 and 2014 to the NGO, the remaining tax deduction will be 32.5% (35% in 2016).
In order to enjoy this right, the donor must have a certificate issued by the NGO , but since NGOs communicate the donations received, it is normal that these are already reflected in the income tax return or in the tax data provided by the Tax Agency.
It is therefore important that the information sent to the NGO for the issuance of the corresponding certificate is complete and up to date, and must contain the name and qatar email list surname in the case of natural persons and the company name, NIF or CIF and updated address.
General deductions for donations in the personal income tax in the 2014 income tax
Donations to NGOs are limited to 10% of the taxable base (art. 68.3 Law), and donations made in accordance with the following deduction modalities must be included in the income tax return:
Donations to beneficiary entities of patronage with the right to a 25% deduction , except for priority programs whose deduction will be 30 percent, with a limit of 15 percent of the taxable base. The donations included here must meet the requirements set out in Law 49/2002.
Donations to other entities not included in the scope of Law 49/2002. This section will record the amounts donated to the entities listed below, when they do not meet the conditions and requirements to be included in the previous section:
Legally recognized foundations that are accountable to the corresponding protectorate body.
Associations declared of public utility.
The joint base of the deductions for donations in their different forms may not, in general, exceed 10% of the taxable base for the year.
Changes from 2015 onwards in deductions for NGOs
Since January 1, 2015, the tax deduction for donations (Article 19 of Law 49/2002 on Patronage) to non-profit organizations has been increased, as follows:
The first €150 donated (in all donations made as a taxpayer in the fiscal year) will be tax deductible by 50% in 2015 and 75% in 2016.
If the donation is equal to or greater than the donations made in 2013 and 2014 to the NGO, the remaining tax deduction will be 32.5% (35% in 2016).