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V0256-22 14 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por donativos

Donating a vehicle to a local council allows for personal income tax deductions

A taxpayer inquired whether donating an electric vehicle to a local council for educational purposes qualifies for a personal income tax (IRPF) deduction. The Directorate General for Taxes (DGT) ruled that, as the recipient is a local authority and the donation is irrevocable and unconditional, it does entitle the donor to the deduction.

The question raised

Whether the donation may benefit from the deduction for donations in the Personal Income Tax.

The DGT's ruling

The donation of assets to a Local Entity (City Council) entitles the donor to the deduction provided for in Article 68.3 of the Personal Income Tax Law (LIRPF). To this end, it must be an irrevocable, pure, simple donation made with the intent of liberality. The basis for the deduction in donations of assets shall be the book value at the time of transfer or, failing that, the value determined by the Wealth Tax regulations.

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