Amount of deduction
Regulation: Article 20 Law 49/2002
Taxpayers will have the right to deduct from the total amount, less the deductions and bonuses provided for in Chapters II, III and IV of Title VI of the LIS , 35 percent of the deduction base.
The amounts corresponding to the tax period not deducted may be applied in the settlements of the tax periods that conclude in the 10 immediate and successive years .
If in the two immediately preceding tax periods donations, gifts or contributions with the right to deduction have been made in favor of the same entity for an amount equal to or greater than, in each of them, that of the previous tax period, the deduction percentage applicable to the deduction base in favor of that same entity will be 40 percent .
The basis of this deduction may not exceed 10 percent of the taxable base of the tax period.
Amounts exceeding this limit may be applied in tax periods ending the 10 immediate and successive years.
Note:
Article 22 of Law 49/2002 establishes that the General State Budget Law may establish a list of priority patronage activities and beneficiary entities . In relation to these activities and beneficiary entities, the General State Budget Law may increase by a maximum of five percentage points the percentages and limits of the deduction for donations of Law 49/2002. For these purposes, the percentage of 35 percent applicable to this deduction may be raised to 40 percent and the increased percentage from 40 percent to 45 percent. In addition, the maximum limit of 10 percent of the impossible base of the tax period will be raised to 15 percent .
Example:
Ask:
Company "A" has made the following donations to the same foundation to which the special regime provided for in Law 49/2002 applies.
In fiscal year 2022 , can company "A" apply the increased percentage established in article 20 of Law 49/2002 on a deduction basis?
Answer:
The second paragraph of article 20 of Law 49/2002 establishes that the increased deduction percentage will be applied if in the two immediately preceding tax periods donations, gifts or contributions with the right to deduction have been made in favor of the same entity for an amount equal to or greater than, in each of them, than that of the previous tax period.
In accordance with the above, in fiscal year 2022 the amounts donated in fiscal years 2021 and 2020 must be taken into account, but also those made in the fiscal year 2019 , to the extent that the rule requires that in the two immediately preceding tax periods, donations had been made in favor of an entity for an amount equal to or greater than that of the previous tax period (in In this case, with respect to 2020 the donations made in the previous year would have to be analyzed, that is, 2019 ).
Therefore, as in fiscal year 2019 company "A" did not make any donation, in fiscal year 2022 will not be able to apply the increased percentage of deduction provided for in article 20 of Law 49/2002 for the donation made in said year.
In addition to what is indicated in the previous paragraph in relation to fiscal year 2019 , company "A" must take into account that for the application in fiscal year 2022 of the increased type of deduction, it is necessary that in the years 2020 and 2021 donations have been made in favor of the same entity for an amount equal to or greater, in each of them, to the from the previous year. Regarding the donation made in the fiscal year 2022 , it is not required for the application of the increased rate that it be higher than that made in 2021 .