B Law & Tax
26 April 2023

Tax advisor: Patronage tax rebate for professionals who donate services

Presented the agreement with the Ministry of Finance to bring forward the tax rebate for patronage to professionals who provide their services on an altruistic basis.

In addition to increasing tax deductions in personal income tax and corporate income tax for those individuals or companies that make contributions to non-profit organizations, the new text also includes the novelty of allowing companies and professionals to offer services altruistically to these same entities. In this way, they will be able to benefit from a tax deduction, as long as an agreement is signed establishing the amount of the service. Within this block of services may be included those related to consultancy and advice, advertising space in the media, donations for the rehabilitation of cultural property and protected natural areas, as well as donations of cultural property of recognized authors.

Main novelties

Micropatronage is developed and the percentages of the deductions are raised: 80% of the donation in the IRPF for individuals and 40% for the rest of the entities.

– For legal entities, a 40% deduction is also established. To reward sustained patronage, the deduction can be increased to 50%; in the case of individuals, to 45%. Both increases are given as long as the same donation has been made during the previous two years.

– The consideration of goods or services of a symbolic nature is allowed, provided that they do not represent more than 15 percent of the value of the donation, and with a limit of 25,000 euros.

– The types of exempt economic benefit are extended to exempt economic exploitations, if they are developed by non-profit entities, in activities based on research, development, innovation, social and labor insertion of people at risk of social exclusion, education and professional training, etc.

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