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New regulations for 2023

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Main tax changes introduced by Royal Decree-Law 6/2023, of December 19, which modifies Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage

PERSONAL INCOME TAX (IRPF)

Article 68 of Personal Income Tax Law 35/2006 establishes in its section 3 (deduction for donations and other contributions) that taxpayers may apply the deductions provided for in Law 49/2002 , of December 23, on the tax regime of non-profit entities and tax incentives for patronage.

With effect from 1 January 2024 following changes are introduced in this latest regulation:

  • Deduction of the personal income tax rate.

    Article 19 of Law 49/2002 is modified by Article 129 Section Six of Royal Decree-Law 6/2023, increasing tax incentives for patronage:

    • The deduction percentage applicable generally is raised from the current 35% to ## 40%.

    • The amount of the first section of the deduction base to which the 80% percentage is applied is increased from 150 to 250 euros .

      Deduction base Amount up to Percentage of deduction
      250 euros. 80
      Remaining deduction base. 40

    • On the other hand, is reduced from 4 to 3 years the recurrence , that is, the number of years in which donations must be made to the same entity for an amount equal to or greater than that of the previous year, to access the increase of 5 points in the deduction percentage, percentage that is also increased to 45%.

  • Donations, gifts and tax-deductible contributions.

    • Letter f) of section 1 of article 17 of Law 49/2002 is added by article 129 section Four of Royal Decree-Law 6/2023.

      The transfer of use of a movable or immovable property without consideration is included as a specific type of donation that can generate the deduction, since, although it could be considered to be included within the donations of rights, in many cases the lack of an express mention prevented these transfers from being carried out effectively.

    • Letter g) of section 1 of article 18 of Law 49/2002 is added by article 129 section Five of Royal Decree-Law 6/2023.

      The valuation of the transfer of use of movable or immovable property is required, establishing as deduction base the amount of expenses incurred by the transferor in relation to such property during the transfer period, provided that they would have been considered tax-deductible expenses if they had been transferred for a fee and are duly accounted for when the transferor is required to keep accounting records in accordance with the Commercial Code or equivalent legislation.

      In no case will taxes or interest on foreign capital invested in the acquisition or improvement of the property and other financing costs form part of the basis for the deduction.

Real Decreto-ley 6/2023, de 19 de diciembre,

por el que se aprueban medidas urgentes para la ejecución del Plan de Recuperación, Transformación y Resiliencia en materia de servicio público de justicia, función pública, régimen local y mecenazgo.