Solidarity offers tax advantages in order to encourage collaboration in social projects.
Deductions for private individuals:
Deductions for companies:
The Josep Carreras Foundation is a non-profit organisation under Law 49/2002, of 23 December, which regulates the “tax regime for non-profit organisations and tax incentives for patronage”.
Articles 17, 18 and 20 Law 49/2002. When a company makes a donation (pure and simple, irrevocable donations and contributions, which are not reported by the company), it benefits from a deduction of up to 35% of the full amount of its Corporate Income Tax, up to the limit of 10% of the taxable base. The amounts corresponding to the tax period not deducted may be applied in the tax assessments for the tax periods ending in the next 10 years and thereafter.
Article 25 Law 49/2002. When a company signs a Business Collaboration Agreement for activities of general interest, the amount donated is considered a deductible expense in terms of the taxable base for corporate income tax, with no limit on the amount. The amounts corresponding to the tax period not deducted may be applied in the tax assessments for subsequent tax periods. It is a non-taxable activity and allows for the reporting of the agreement as stipulated in the collective agreement.
Article 6. Advertising sponsorship contracts. Financial assistance provided to a non-profit organisation by virtue of these contracts (as defined in Article 24 of the General Advertising Law 34/1998) will be considered a deductible expense in the taxable base for corporate income tax purposes, with no limit on the amount. It is an activity subject to VAT as it is deemed a provision of services, fully deductible by the company except in special cases.
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