Tax system for non-profit organisations

1. Application of the tax regime for non-profit entities

Corporate Taxpayers to whom the tax regime provided for in Title II of Law 49/2002 of 23 December on the tax regime for non-profit entities and tax incentives for patronage applies shall enter the following corrections to the accounting result in boxes [00391] and [00392] "Tax regime for non-profit entities (Law 49/2002)" on page 13 of form 200:

• In box [00392] of decreases, you will include the income obtained in the tax period that, by application of the special regime, is exempt or that should not be computed for the determination of the tax base. Among these incomes, we can mention the following:

  • Those derived from the donations and donations received to collaborate in the purposes of the entity.

  • Fees paid by members , collaborators or benefactors, provided that they do not correspond to the right to receive a benefit derived from a non-exempt economic exploitation.

  • The subsidies , except those intended to finance the realization of non-exempt economic operations.

  • Those from the movable and immovable assets of entity .

  • Those arising from acquisitions or transfers, by any title, of assets or rights, including those obtained on the occasion of the dissolution and liquidation of the entity.

  • Those obtained in the exercise of exempt economic operations in accordance with the provisions of article 7 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage.

  • Those that, in accordance with tax regulations, must be attributed or imputed to the entity, and that come from exempt income included in any of the previous sections.

• In the box [00391] of increases will include the non-deductible items for the determination of taxable income. These non-deductible items, in addition to those established by the general regulations of the Corporate Tax, are the following:

  • The expenses attributable, exclusively, to the exempt operations . According to the wording of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, expenses partially attributable to non-exempt income will be deductible in the percentage that the income obtained in the year of non-exempt economic operations represents with respect to the total income of the entity.

  • Amounts allocated to the amortization of assets not affected by activities subject to tax.

    In the case of assets partially allocated to the performance of exempt activities, the amounts allocated to the amortization of the portion of the assets allocated to the performance of said activities.

  • The amounts that constitute application of results and, in particular, the surpluses of non-exempt economic operations.

2. Contributions and collaboration in favor of non-profit organizations

In boxes [00250] and [00251] "Contributions and collaboration in favor of non-profit entities" page 13 of form 200, the following corrections must be made to the accounting result:

• In accordance with the provisions of article 23.1 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, entities that have made the donations, gifts or contributions referred to in article 17 of said law must include in box [00251] of decreases, the positive income subject to Corporation Tax, revealed on the occasion of said donations, gifts and contributions , since they are exempt.

• Likewise, in accordance with the provisions of articles 25 and 26 of Law 49/2002 , the amounts corresponding to the following contributions and expenses will be included as decreases in box [00251] , in their deductible condition to determine the taxable base of the Tax:

  • Financial aid provided to entities benefiting from patronage , within the framework of business collaboration agreements in activities of general interest, when such entities commit in writing to disseminate, through any means, the participation of the collaborator in said activities.

  • Expenditures incurred for purposes of general interest , such as, among others, those for the defence of human rights, of victims of terrorism and violent acts, social assistance and social inclusion, civic, educational, cultural, scientific, sporting, health, labour, institutional strengthening, development cooperation, promotion of volunteering, promotion of social action, defence of the environment, promotion and care of people at risk of exclusion for physical, economic or cultural reasons, promotion of constitutional values and defence of democratic principles, promotion of tolerance, promotion of the social economy, development of the information society, scientific research, development or technological innovation and its transfer to the productive fabric as a driving force of business productivity and competitiveness.