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Practical Handbook for Companies 2021

Waiver of non-profit status

Non-profit entities that have exercised the option for the tax regime established in Title II of Law 49/2002 may renounce to its application.The renunciation, as established in Article 1.2 of Royal Decree 1270/2003, will take effect from the tax period that begins after its presentation, which must be made at least one month before the beginning of the tax period, by means of the corresponding census declaration.

To be noted:

The renunciation to the tax regime of Title II of Law 49/2002 will be made effective by ticking the box [135] on page 1 and the boxes [652] and [654] on page 6 of form 036.

In the corporate income tax return, non-profit entities that have renounced the application of this regime, will no longer tick the box [00001] "Non-profit entity that welcomes tax regime Title II Law 49/2002" on page 1 of form 200, from the tax period that begins after the census return has been filed.

Non-profit entities that renounce to the application of the tax regime established in Title II of Law 49/2002, will apply the regime of the partially exempt entities of Article 9.3 of the LIS regulated in Chapter XIV of Title VII of the LIS, being obliged to declare all their income, both exempt and non-exempt, except when they meet the requirements of Article 124.3 of the LIS, in which case they are not obliged to declare.

To be noted:

When these entities renounce the application of the tax regime established in Title II of Law 49/2002, from the tax period that begins after the submission of the census declaration of renunciation, they must tick the box [00002] "Partially exempt entity" on page 1 of form 200, instead of the box [00001] "Non-profit entity receiving tax regime Title II Law 49/2002".