Book FOUR of Royal Decree-Law 6/2023, of December 19, approving urgent measures for the execution of the Recovery, Transformation and Resilience Plan in matters of public service of justice, civil service, local regime and patronage, modifies Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage.

In particular, the deduction percentage of 80% of the Personal Income Tax rate will be applied to the first 250 euros of donations, gifts or set of contributions with the right to deduction (previously 150 euros). The deduction base exceeding 250 euros will be subject to a deduction percentage of 40% (previously 35%). This percentage will be 45% when in the two immediately preceding tax periods donations, gifts or contributions with the right to deduction have been made in favor of the same entity, the amount of the donation in this year and that of the previous tax period being equal to or greater, in each of them, than that of the immediately preceding year.

In the Corporate Tax the percentage of deduction of the full rate is increased from 35 to 40% based on deduction for donations, gifts and contributions with the right to deduction. This percentage may be 50% if in the two immediately preceding tax periods donations, gifts or contributions with the right to deduction have been made in favor of the same entity, the amount of the donation in this tax period and that of the previous tax period being equal to or greater than, in each of them, that of the immediately preceding tax period. The basis of this deduction may not exceed 15 % of the taxable base of the tax period (previously 10%). Amounts exceeding this limit may be applied in tax periods ending in the next ten years.

Finally, taxpayers of the Non-Resident Income Tax who operate in Spanish territory without a permanent establishment may apply the deduction established in section 1 of article 19 of this Law in the declarations that they submit for said tax for taxable events that occurred within one year from the date of the donation, gift or contribution. The basis of this deduction may not exceed 15 % (previously 10%) of the taxable base of all the declarations submitted within that period.

These amendments will come into force on 1 January 2024.