On 19 December the Council of Ministers approved Royal Decree-Law 6/2023. which amends the law on patronage that has been in force for more than 21 years. Published in the BOE on 20 December, it will be in force from 1 January 2024.
It involves two important changes that will affect all Aladina’s members and donors, we tell you all about it!
- The deduction percentages are increased:
- In the case of individuals, the base on which 80% of the donation can be deducted from personal income tax is increased from €150 to €250 and for the remainder there will be a 40% deduction (instead of the current 35%).
- In the case of legal entities, corporate tax deductions are also increased from 35% to 40%.
And if you are a recurring donor, or a long-time member, the deductions are even greater, you only have to meet one requirement: in the previous two years, the donation has been made to the same entity for at least the same amount.
- For individuals it increases to 45% (previously 40%).
- For legal persons it increases to 50% (previously 40%).
Other important changes:
- The scope of the partnership agreement is extended to explicitly cover in-kind contributions, including the provision of services free of charge. In addition, the partner is granted the possibility to disseminate this collaboration.
- The transfer of the use of various movable and immovable assets is included in the category of tax-deductible donations, as part of the broader concept of donation of rights.
- The definition of partnership agreement is broadened to explicitly cover in-kind contributions, including the provision of services free of charge. In addition, the partner is given the possibility to promote this collaboration.
- It incorporates the modality of patronage of recognition or reward, which enables the donor to receive symbolic returns in the form of goods or services in return. This is subject to the condition that such returns do not exceed 15% of the value of the donation, subject to a maximum limit of €25,000.
- The categories of exempt economic activities are extended to those carried out by non-profit organisations. These include development and innovation, the provision of socio-occupational integration services for people at risk of social exclusion, as well as vocational education and training for highly able students.
- The automatic application of local tax exemptions for the assets of non-profit organisations is strengthened.