Tax treatment of donations
Yes. The tax information reflects the amount of donations and contributions made and also includes their amount and whether they are recurring or not.
The new calculation system established by the regulations starting in 2015 means that:
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Up to 150 euros of donations made jointly by the taxpayer, an increased deduction percentage of 75% must be applied (in priority patronage activities, 80%).
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The excess over 150 euros of the set of 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 to that of the two previous years (recurrence) and whether or not the entity's activity is considered a priority activity of patronage.
Therefore, the deduction percentages applicable in 2016 to personal income tax taxpayers who have made donations would be the following, depending on the amount of the donation, whether or not there is recurrence in the donation and whether or not the activity is considered a priority of patronage:
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 appears in the Income WEB program within the Incorporated Data tab, you can view amounts, recurrence and percentages applied to this deduction that will be automatically transferred to the corresponding income section.
However, it will be necessary to verify that the tax data that appears is correct and that the percentages are correctly applied; They 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 preceding year.
That is, the entity in question must comply with:
Donation 2014 ≤ Donation 2015 ≤ Donation 2016
In this case, the appropriate deduction is the result of applying the deduction percentage of 75% to the amount of the donation made.
Deduction = 75% x Donation amount
The applicable deduction is coincident with 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
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If the donation recurrence requirement is not met:
Deduction = 150 x 75% + (200-150) x 30% = 127.50
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If the donation recurrence requirement is met:
Deduction = 150 x 75% + (200-150) x 35% = 130
The deduction is:
Entity deduction = 100 x 75% + (150 – 100) x 75% + (100 – 50) x 35% = 130
The deduction is:
Entity deduction = 150 x 75% + (240 – 150) x 30% + 120 x 35% = 181.50
The deduction is:
Entity deduction = 150 x 75% + (300 – 150) x 30% + 200 x 35% = 227.50
The most favorable option for the taxpayer will always be applied, and the personal income tax self-assessment calculation program calculates it accordingly, therefore it will be understood that the first 150 euros of donation correspond first to donations without recurrence, first for priority activities. and then the rest, so that the rest of the donated amounts can benefit from the higher deduction percentages, if applicable:
100x80% + 50x75% + 250x40% + (300-50)x30% + 1000x35% = 642.50