Practical examples

Example 1

Company "A" has made the following donations to the same foundation to which the special regime provided for in Law 49/2002 applies:

Exercise 2023: Make a donation of 1,000 euros.
Exercise 2024: Make a donation of 1,500 euros.
Exercise 2025: Make a donation of 1,300 euros.

In the 2025 financial year, can company "A" apply the increased percentage established in Article 20 of Law 49/2002 to the deduction base?

Solution:

By virtue of the modification made for tax periods commencing on or after January 1, 2024, 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 entitled to deduction have been made in favor of the same entity, the amount of the donation, gift or contribution of this tax period and that of the previous tax period, being equal to or greater, in each of them, than that of the immediately preceding tax period.

According to the above, in the 2025 financial year, company "A" may apply the deduction for donations with an increased percentage if in 2023 and 2024 they made donations to the same entity. In addition, the amounts donated in the 2023, 2024 and 2025 fiscal years must be taken into account, since the rule requires that the amount of the donation made in 2025 and 2024 be equal to or greater, in each of them, than that made in the immediately preceding year.

Therefore, although company "A" has made donations in the fiscal years 2023, 2024 and 2025, since in fiscal year 2025 the amount of the donation made (1,300 euros) is not equal to or greater than the amount made in fiscal year 2024 (1,500 euros), in fiscal year 2025 The increased percentage cannot be applied to the donation made in that year.

In this way, with the regulations in force for tax periods starting from January 1, 2024, the number of exercises is reduced from four to three yearsduring which the donor must make donations to the same entity for an amount equal to or greater than that of the immediately preceding year, in order to access the increased percentage. Therefore, in order to apply the increased percentage in the 2025 fiscal year, company "A" must make donations to the same entity for three years (2025, 2024 and 2023).

In addition to the above requirement, under the new regulations, in order to apply the increased percentage, company "A" must have made a donation in the 2025 financial year for an amount equal to or greater than that made in 2024.

Example 2

Keep in mind:

In solving this example, the modifications to the percentages and limits made by Royal Decree-Law 6/2023, of December 19, with effects for tax periods beginning on or after January 1, 2024, have been taken into account. However, for tax periods beginning before January 1, 2024, the percentages and limits in force under the previous regulations must be applied.

Company "A", whose tax period coincides with the calendar year and whose net turnover did not exceed 20 million euros In the 2024 and 2025 financial years, it has made a series of donations to different foundations to which the special regime provided for in Law 49/2002 applies.

The data of company "A" to be taken into account in its Corporate Tax settlement are the following:

Exercise 2024

Taxable base: 2,000,000
Full fee (25%): 500,000
Donation: 400,000
Base Limit for Deduction for Donations = 15% 2,000,000 (BI) = 300,000
- > 15% BI (Deduction base = 200,000) = 400,000 – 300,000 = 100,000 euros.
  
  This amount may be applied to tax periods ending in the next 10 years.
- </= 15% BI (Deduction base = 200,000) = 300,000 euros
  
  Tax credit that I can apply for not exceeding the limit of the deduction base = >300,000 x 40% = 120,000 euros.

Corporate Income Tax Settlement 2024 (with sufficient net tax liability)

Taxable base: 2,000,000
Full fee (25%): 500,000
(-) Donations deduction 2024: 120,000
Result: 380,000

Corporate Income Tax Settlement 2024 (without sufficient net tax liability)

Taxable base: 2,000,000
Full fee (25%): 500,000
(-) Deduction for double taxation: 450,000
(-) Donations deduction 2024: 50,000

The entity can only apply 50,000 euros of the donation deduction generated from 120,000 euros. There is an outstanding balance of 70,000 euros, which has already been calculated using the 2024 rate and limit. Therefore, these 70,000 euros are a deduction generated in the tax period not deducted due to insufficient net tax liability, which may be applied without limit in the settlements of the tax periods that end in the 10 immediately following years.
Result: 0

Deduction for donations 2024 pending application in future years:

100,000 euros of deduction base that have exceeded the limit of 15% on the Taxable Base to which the deduction rates and limit in force in 2025 will be applied.
€70,000 tax credit that can be applied without limit.

Exercise 2025

Taxable base: 2,000,000
Full fee (25%): 500,000
Donation: 500,000
Base Limit Deduction for donations: 15% 2,000,000 (BI) = 300,000
- > 15% BI (Deduction base = 300,000): (500,000 - 300,000) = 200,000 euros.
  
  This amount may be applied to tax periods ending in the next 10 years.
- </= 15% BI (Deduction base = 300,000): 300,000 euros
  
  Deduction in quota that I can apply for not exceeding the limit of the deduction base: (300,000 x 40%) = 120,000 euros.

Corporate Income Tax Settlement 2025

Taxable base: 2,000,000
Full fee (25%): 500,000
(-) Donations deduction 2024: 70,000 (applied without limit)

Regarding the deductions for donations that remain to be applied, the company "TO" You can choose between:
- (-) Donations deduction pending from 2024: (100,000 euros x 40%) = 40,000, and
  
  (-) Donations deduction generated 2025: (200,000 x 40%) = 80,000 euros
  
  Deductions for donations pending application in future years:
  
  There are 100,000 euros of deduction base from 2025 that have not exceeded the limit of 15% of the taxable base, but have not been applied because the deduction for donations pending from 2024 has been applied, as well as 200,000 euros of deduction base from 2025 that could not be applied because they have exceeded the limit of 15% of the taxable base; Both amounts may be applied in the tax periods ending in the next 10 years.
  
  Total: (40,000 + 80,000) = 120,000
- (-) Donations Deduction 2025: 120,000 euros
  
  Deductions for donations pending application in future years:
  
  There are 100,000 euros of deduction base generated in 2024 that exceeded the limit of 15% of the taxable base and 200,000 euros of deduction base from 2025 that could not be applied because they exceeded the limit of 15% of the Taxable Base; Both amounts may be applied in the tax periods ending in the next 10 years.
Result: 360,000