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V0961-23 20 April 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por donativos

Entrance fees to public utility associations may be deductible if paid with the intent of liberality

A query is made as to whether a single entrance fee to a non-repayable fund of a public utility association is deductible for Personal Income Tax purposes. The DGT responds that to be deductible, it must be a donation or an irrevocable, pure, and simple contribution, without consideration, and made with the intent of liberality.

The question raised

Question posed: Whether members may avail themselves of the deduction for donations in Personal Income Tax for the aforementioned entrance fee.

The DGT's ruling

For the fees of a public utility association to be deductible, they must be irrevocable, pure, and simple donations or contributions that do not involve present or future consideration for a good or service. The existence of the intent of liberality is a question of fact that depends on the specific circumstances and the rights granted by the bylaws in exchange for payment. The substantiation of these requirements is the responsibility of the management bodies and the tax inspection authorities.

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