Tax Agency: Tax treatment of donations

Yes. The tax information reflects the amount of donations and contributions made and also indicates the amount of the donation and whether it is recurring or not.

The new calculation system established by the regulations from 2015 assumes that:

Up to 150 euros of donations made in total by the taxpayer, an increased deduction percentage of 75% applies (in priority patronage activities, 80%).
The excess over 150 euros of the total donations made corresponds to a different deduction percentage (30, 35 or 40 percent), depending on whether the donation to the same entity has not been less than that of the two previous years (recurrence) and whether or not the activity of the entity is considered a priority activity of patronage.

Therefore, the deduction percentages applicable in 2016 to personal income tax payers who have made donations would be the following, depending on the amount of the donation, whether or not there is a recurrence in the donation and whether or not the activity is considered a priority for patronage:

**Deduction percentages for donations 2016 (IRPF)**
Donation Amount	Non-Priority Activity Patronage	Priority Activity Patronage
Up to €150	75 %	80 %
Excess over €150	30%	35 %
Excess over €150 and recurrence	35 %	40%

In the tax data that appear in the Renta WEB program within the Incorporated Data tab, you can view amounts, recurrence and percentages applied to this deduction that will be automatically entered into the corresponding income section.

However, it will be necessary to check that the tax data appearing are correct and that the percentages are correctly applied; must be modified otherwise.

That the donations made to the same entity in the two immediately preceding tax periods have been for an amount equal to or greater than that of the previous year.

That is to say, the entity in question must comply with:

Donation 2014 ≤ Donation 2015 ≤ Donation 2016

In this case, the deduction that applies is the result of applying the deduction percentage of 75% to the amount of the donation made.

Deduction = 75% x Donation amount

The deduction is equal to the sum of:

Deduction entity 1 = 75% x Donation amount entity 1

Deduction entity 2 = 75% x Donation amount entity 2

Total donation deduction = Deduction entity 1 + deduction entity 2

If the requirement for donation recurrence is not met:

Deduction = 150 x 75% + (200-150) x 30% = 127.50
If the requirement for donation recurrence is met:

Deduction = 150 x 75% + (200-150) x 35% = 130

The deduction is:

Deduction entity = 100 x 75% + (150 – 100) x 75% + (100 – 50) x 35% = 130

The deduction is:

Deduction entity = 150 x 75% + (240 – 150) x 30% + 120 x 35% = 181.50

The deduction is:

Deduction entity = 150 x 75% + (300 – 150) x 30% + 200 x 35% = 227.50

The most favourable option for the taxpayer will always be applied, and the personal income tax self-assessment calculation programme calculates it accordingly, therefore it will be understood that the first 150 euros of donation correspond firstly to non-recurring donations, first for priority activities and then the remaining ones, so that the rest of the donated amounts can benefit, where appropriate, from the highest deduction percentages:

100x80% + 50x75% + 250x40% + (300-50)x30% + 1000x35% = 642.50

Tax treatment of donations

Is the amount of the deduction for donations to non-profit entities included in the 2016 tax information?

How is the deduction calculated? Should I check that information?

What does the recurrence requirement mean to qualify for increased deduction percentages?

Taxpayer who has only made one donation of less than or equal to 150 euros per year to a non-profit entity. What deduction is eligible for you?

Taxpayer who has made two donations to non-profit entities that do not carry out priority patronage activities and the sum of these is less than or equal to 150 euros per year. Deduction applicable.

Taxpayer who has made a donation of 200 euros per year to a non-profit organization (does not carry out priority patronage activities). Deduction applicable.

Taxpayer who has made two donations of 100 euros each to two non-profit entities and in entity 1 the recurrence requirement is met, while in entity 2 it is not met. Deduction applicable.

Taxpayer who has made a donation to non-profit entity 1 for 120 euros (meets recurrence requirement) and another donation to entity 2 for 240 euros (does not meet recurrence requirement). Neither of the two entities carries out priority patronage activities. Deduction applicable.

Taxpayer who has made a donation to non-profit entity 1 for 200 euros (meets recurrence requirement) and another donation to entity 2 for 300 euros (does not meet recurrence requirement). Neither of the two entities carries out priority patronage activities. Deduction applicable.