The FOURTH book of Royal Decree-Law 6/2023, of December 19, which approves urgent measures for the execution of the Recovery, Transformation and Resilience Plan in matters of public service of justice, public 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 fee will be applied to the first 250 euros of donations, donations or set of contributions entitled to deduction (before 150 euros). A deduction percentage of 40% (previously 35%) will be applied to the deduction base that exceeds 250 euros. This percentage will be 45% when in the two immediately preceding tax periods donations, donations or contributions with the right to deduction have been made in favor of the same entity, the amount of the donation for this year and that of the previous tax period being equal or higher, in each of them, than the immediately preceding year.

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

Finally, taxpayers of 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 by said tax is presented for taxable events that occurred within a period of one year from the date of the gift, donation or contribution. The base of this deduction may not exceed 15 % (previously 10%) of the tax base of all the returns submitted within that period.

These modifications will come into force from January 1, 2024.