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V0928-24 25 April 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · explotación económica exenta

Sale of charitable toys taxed at 10% if auxiliary activity limits are exceeded

A foundation sought clarification on whether the sale of 'baby pelones' dolls constitutes an exempt activity or one unrelated to its purpose. The DGT ruled that if such sales exceed 40% of total income, they cannot be classified as exempt auxiliary activities and must be taxed at 10%.

The question raised

1) Whether the sale of the toy, under the indicated terms, meets the requirements to be considered an exempt economic activity within the meaning provided for in section 1.a) of article 7 of Law 49/2002, of December 23, on non-profit entities and tax incentives for patronage, insofar as it is carried out within the framework of the Foundation's statutory purposes, and therefore, for the protection of children and youth, contributing directly to the achievement of said purpose.

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