Donations made by individuals to NGOs, associations or foundations by DANA They may be deducted in the 2024 Income Tax return.which will be prepared in the spring of 2025. Not, however, those made to private people who have requested collections to give directly to the municipalities or to buy food, clothing or other needs for those affected.
The reform of the Patronage Law, which came into force on January 1, expanded personal income tax deductions for making contributions to non-profit entities.
TaxDown tax experts point out that donors will be able to deduct from their income the 80% of the first 250 euros and 40% of the rest of the donation. For example, if 400 euros have been donated to an NGO to help those affected, they will receive a total of 260 euros in their income: 200 euros because it is 80% of the first 250 euros donated and another 60 euros because it is 40% of 150 euros (the difference between 400 euros and the first 250 euros). If the donation is recurring, that is, it is made for three years, this remaining amount increases from 40% to 45%.
Money sent to another individual
However, if individuals have donated money directly to a particular asset through Bizum or a donation platform crowdfunding (collective financing) this contribution cannot be deducted from the Income because they are not entities that benefit from patronage, as established by the Tax Agency.
If a person collects the money
Finally, if an individual has been in charge of collecting this aid through Bizum or other collaborative platforms, they will have to declare it in next year’s income and, If you do not justify that they are a donation, pay taxes on them. They will have to pay the corresponding personal income tax and will appear included in box 304 corresponding to other capital gains.
According to TaxDown experts, the Treasury can attribute these donations as unjustified income and have to pay the taxes that correspond to them according to the autonomous community in which they live. For example, a resident of Valencia who has received €15,000 euros in donations to help her neighbors may face paying more than €5,700 in taxes on her income next year, since these incomes are not subject to no type of withholding if they cannot be settled as a donation nor can they be justified as such.
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