Home Donations Tax breaks

Tax breaks

Funding of, and donations of goods to, pangea onlus are tax-deductible under art. 13 of legislative decree no. 460/1997* 1- Funding Since cash donations are not allowed, in case of funding, please, save a payment receipt, or a bank statement for transfer, or a credit card statement. A private individual (i.e., any natural person subject to IRPEF tax) can deduce donations from his taxable income in an amount not more than 10% of total gross income and not more than 70.000 euros per year (art. 14 of law no. 80/2005). As an alternative, he can detract 19% of donated sums from gross tax in an amount not more than 2.065,83 euros (art. 13-bis, paragraph 1, subparagraph i-bis of President's decree 917/86). A business enterprise (i.e., any organization subject to IRES tax) can deduce donations from its total income in an amount not more than 10% of total gross income and not more than 70.000 euros per year (art. 14 of law no. 80/2005). Otherwise, it can deduce donations from its enterprise income in an amount not more than 2% of total gross income and not more than 2.065,83 euros. 2- Donations of goods Under art.13 of legislative decree no. 460/97, business enterprises are allowed to donate goods either produced or exchanged by enterprises themselves, provided their specific value is not more than 1.032,91 euros. This max amount (i.e., all expenses incurred by the enterprise to either produce or purchase goods) contributes to the above-mentioned deduction limit together with potential spontaneous funding. In order to benefit from tax breaks, any enterprise is asked to:     * provide prior information about single donations to IRS by registered mail (return receipt requested). Donations of either perishable or low-value goods are exempted from this rule;     * keep record of the amount and nature of goods donated in each month in VAT (or other suitable) records, in order to benefit from VAT-exemption under art. 19-bis of President's Decree no. 633/1972;     * record the formal note issued by Pangea ONLUS. Pangea ONLUS is obliged to issue a formal note certifying its commitment to personally use donated goods according to institutional purposes. For further info, please contact your accountant or look at the ‘Guide to Tax Breaks for Donations ’ from IRS. (*) Legal information contained on this page are valid only for Italy.

 

< Prev		Next >