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V2852-21 17 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por donativos

Membership fees and donations to brotherhoods are only deductible if the entity meets public utility or patronage requirements

The inquirer asks whether membership fees and donations to a brotherhood or confraternity allow for tax deductions under Personal Income Tax (IRPF). The Directorate General for Tax (DGT) responds that the deduction depends on whether the entity is a public utility association, a recognised foundation, or a non-profit entity under Law 49/2002.

The question raised

The applicant wishes to know whether ordinary membership fees and donations in favor of a Brotherhood/Confraternity may be subject to deduction in the Personal Income Tax.

The DGT's ruling

To apply the deduction, the entity must be a non-profit entity, a foundation accountable to a protectorate, or a public utility association. Membership fees are only deductible if made with the intent of liberality and do not grant rights in exchange. The existence of such intent of liberality must be determined through objective criteria, considering the rights granted to members by the statutes.

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