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V0116-18 23 January 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por donativos

Donations to the Chinese Treasury are not tax-deductible for Personal Income Tax

A taxpayer inquired whether a donation of 35,000 yuan made to the Lankao Treasury in China could be deducted from their tax return. The Directorate General for Taxes (DGT) ruled that the taxpayer is not entitled to the tax deduction for donations.

The question raised

Issue raised: Deductibility in Personal Income Tax and documentary justification.

The DGT's ruling

To apply the deduction provided in Article 68.3 of the Personal Income Tax Law (LIRPF), the donee entity must be a non-profit entity under Law 49/2002, a legally recognized foundation accountable to the protectorate, or a public utility association. Since the donee is the Public Treasury of China, none of these circumstances apply, nor is it a foreign foundation with a delegation registered in the Registry of Foundations.

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