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V2334-20 8 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · entidades sin fines lucrativos

Artistic donations to a foundation may be exempt from corporate and personal income tax under Law 49/2002

An artist asks about the tax treatment of donating their artwork to a foundation established for cultural management. The DGT states that the foundation may be exempt from corporate tax and the donor may be exempt from personal income tax with deductible donations for IRPF.

The question raised

What would be the taxation of the donation for both the individual donor and the foundation receiving the donation?

The DGT's ruling

If the foundation meets the requirements of a non-profit entity under Law 49/2002, income from donations and income obtained through the acquisition of assets could be exempt from Corporate Income Tax. For the donor, capital gains derived from the donation shall be exempt from Personal Income Tax (IRPF) provided the terms of Law 49/2002 are met. Likewise, the donor shall be entitled to the donation deduction in their income tax return.

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