This article basically explains how the Treasury allows taxpayers to deduct a percentage of donations for ecological purposes from their sworn income statement. The percentages that can be deducted vary depending on the Autonomous Community in which they reside. For a better understanding, we will exemplify with the case of the inhabitants of the Canary Islands.
But before getting into technicalities, the first thing to be clear about is what a donation consists of. It's easy to think we already know what it is, but it's also easy to get confused with what's called a donation. In fact, it is normal to use both terms synonymously when they are not.
A donation for the RAE is a "Gift, gift, assignment, especially for charitable or humanitarian purposes." Instead, it defines donation as the delivery of goods or services to a person for free, voluntarily without expecting anything in return, but not necessarily for charitable or humanitarian purposes (for example, the money that a father or mother gives to a child /to).
In fiscal terms, which is what matters to us in this case, the difference is that donations are tax deductible but donations are not. And although the IRPF Law refers to them interchangeably, what makes the difference is who the money is given to.
Donations according to the Civil Code
The Civil Code explicitly includes donations in its title II with articles ranging from 618 to 656. This is how it defines them as a starting point:
Article 618. Donation is an act of liberality by which a person freely disposes of one thing in favor of another, who accepts it.
Article619. It is also a donation that is made to a person on their merits or for the services rendered to the donor, as long as they do not constitute enforceable debts, or that in which a tax less than the value of the donated is imposed on the donor.
The logic of the Tax Agency at this point is not the same as that of the ordinary citizen.What is a gift for you, is always a donation for the Treasury. Remember the definition of the Civil Code and you will see that it leaves no room for doubt because it does not establish differences or apply any logical criteria.
Now, we will enter into donations with an ecological purpose and specifically in our example of the Community of the Canary Islands and its respective deduction in personal income tax. If you need information about other communities, Findcerca.es is a good option you can use.
The Autonomous Community of the Canary Islands, has made use of its powers and, therefore, regulates its own deductions applicable to taxpayers who have their habitual residence in this territory, such as: donations for ecological purposes.
What does the Treasury mean by donations for ecological purposes
As contemplated in Art. 3, Legislative DECREE 1/2009, of April 21, taxpayers may deduct 10% of the amount of pure and simple monetary donations made during the tax period, and up to the limit of 10% of the full autonomous fee, made to any of the following institutions:
a) The public entities dependent on the Autonomous Community of the Canary Islands, island councils or Canary Islands municipal corporations, whose purpose is the defense and conservation of the environment, these resources being allocated to the development of programs of this nature.
b) Non-profit entities and entities benefiting from patronage, regulated respectively in articles 2 and 16 of Law 49/2002, of December 23, on the Tax Regime of non-profit entities and tax incentives for patronage, always that their exclusive purpose is the defense of the environment and are registered in the corresponding registers of the Autonomous Community of the Canary Islands.
On the other hand, the amount of the deduction may not exceed 150 euros.
Likewise, the following requirements must be met according to Art. 5, Legislative DECREE 1/2009, of April 21:
- Obtain from the donor entity certification in which it appears, in addition to the tax identification number and personal identification data of the donor and the donor entity, the date and destination of the donation, and its amount, when it is monetary. In the case of non-monetary donations, the value of the donated goods must be accredited, by means of a certification issued by the beneficiary technology-based company, as well as the identifying data of the public document or other authentic document proving the delivery of the donated good or right.
- Consisting in the certification indicated above, the express mention that the donation has been made irrevocably and that it has been accepted. The revocation of the donation will determine the obligation to enter the fees corresponding to the benefits enjoyed in the tax period of the year in which said revocation occurs, without prejudice to the applicable late payment interest.