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V1789-18 20 June 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidades sin fines lucrativos

Foundation ineligible for Law 49/2002 regime; donation does not entitle to tax deduction

A company inquired whether its foundation could apply the non-profit entity regime and if donations for a 'Social Bonus' scheme allowed for tax deductions. The DGT ruled that the foundation fails to meet accountability requirements and that the donation is not unconditional.

The question raised

1.- What tax treatment will the donations received by the Foundation have, and whether such Foundation can benefit from the tax regime of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage?

The DGT's ruling

The Foundation cannot benefit from Law 49/2002 due to non-compliance with the requirements regarding accounting obligations, accountability, and economic reports. The donations received could be exempt under the regime for partially exempt entities of the LIS. However, the donation from the company does not allow for deductions because it is not an act of pure and simple liberality, as it seeks to mitigate the non-payment of invoices from an affiliated commercializer.

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