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V1701-23 13 June 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · mecenazgo

Donations to a religious entity do not qualify for tax incentives unless it is a patronaged beneficiary

A Christian Evangelical religious entity has enquired whether the donations it receives are tax-deductible for its donors. The Directorate General for Taxes (DGT) has ruled that, as it cannot be determined whether the entity is a church or an association entitled to the benefits of the Cooperation Agreement, it is not considered a beneficiary of patronage.

The question raised

Whether the donations received by the taxpayer from individuals and legal entities are deductible for the donors.

The DGT's ruling

For donations to entitle one to tax incentives under Law 49/2002, the entity must be a beneficiary of patronage. In the case of religious entities, this depends on their status under the Cooperation Agreements with the State. If it is not proven that the entity is a church or association contemplated in said agreements, it is not considered a beneficiary and donations do not allow for the application of the incentives under Title III of Law 49/2002.

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