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Form 100. Personal Income Tax Return 2018

Patronage incentives: collaboration agreements in activities of general interest

INCENTIVES FOR PATRONAGE: GENERAL CONDITIONS OF APPLICATION

Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, has established the following types of tax incentives for the participation and collaboration of entrepreneurs and professionals in activities of general interest:

  • Business collaboration agreements in activities of general interest.

  • Expenditures on activities of general interest.

The application of these incentives is limited to the scope of those economic activities that determine the net income of their activity under a direct estimation system.

Furthermore, the incentives included in the first two sections are incompatible with the other tax incentives provided for in Law 49/2002, such as the deduction for donations.

The amounts paid or expenses incurred by businessmen and professionals who determine their performance through the Direct Estimation Regime, as a result of business collaboration agreements in activities of general interest entered into with the entities and institutions of Law 49/2002 provided for in Law 49/2002, are considered deductible expenses from the net performance of the economic activity carried out.

business collaboration agreement in activities of general interest means that by which the entities mentioned in the previous paragraph, in exchange for financial assistance for carrying out the activities they carry out in compliance with the specific object or purpose thereof, undertake in writing to publicize the participation of the collaborator in said activities.

There are no limits on the deductibility of these expenses.