10. Tax incentives for patronage: expenses on activities of general interest

Regulations: Art. 26 Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage

For the purposes of determining the net income from the economic activity carried out by taxpayers using the direct estimation method, in either of its two modalities, normal or simplified, the expenses incurred for the purposes of general interest referred to in article 3.1 of the aforementioned Law 49/2002 are deductible.

According to this article, the following are considered as such, among others, those of defense of human rights, of victims of terrorism and violent acts, social assistance and social inclusion, civic, educational, cultural, scientific, sports, health, labor, institutional strengthening, cooperation for development, promotion of volunteering, promotion of social action, defense of the environment, promotion and care for people at risk of exclusion for physical, economic and cultural reasons, promotion of constitutional values and defense of democratic principles, promotion of tolerance, promotion of the social economy, development of the information society, or scientific research, development or technological innovation and its transfer to the productive fabric as a driving element of business productivity and competitiveness.

The deduction of expenses in activities of general interest referred to in this section shall be incompatible with the other tax incentives provided for in Law 49/2002, of December 23, on the tax regime for non-profit entities and tax incentives for patronage.