Donation’s fiscal advantages!
Mom&Woman is a Onlus (non profit-making organization with a social utility) in compliance with the Law Decree n. 460/97, regularly enrolled at the Onlus general registry office of the Lazio Region.
The rules regulating the tax relieves are 2:
- Art. 14 of the law 80/2005 on the basis of which, every donation following certain conditions, is DEDUCTIBLE FROM ONE’S OVERALL INCOME (both for physical and Ires individuals).
- The Law Decree 4.12.97 n. 460, art. 13 affirms that, as an alternative to the previous modality, every donation on behalf of ONLUS organizations is DEDUCTIBLE from taxes (for physical individuals) or DEDUCTIBLE FROM THE BUSINESS INCOME.
Tax relieves for physical individuals
It is possible to deduct from the gross tax the 19% of the amount donated on behalf of ONLUS organizations, until a maximum amount of € 2.065,83 (art. 15-bis of D.P.R. 917/86).
OTHERWISE, it is possible to deduct from one’s income donations on behalf of ONLUS organizations, for an amount not higher than 10% of the overall declared income and, anyway, until the maximum amount of € 70.000,00 per year (art. 14 paragraph 1 Law Decree 35/05 transformed into Law n. 80 of the 14/05/2005). (*)
(*) for all donations made since 17/03/2005
Note: tax relieves cannot be combined with each other.
Remember to keep your donation’s postal or bank receipt.
For the donations made through bank transfers, credit cards, prepaid cards or bank cheques, the statement of account is valid as receipt.
(Art. 23 D.L. 9 july 1997, n. 241)
Physical individuals and Ires bodies can deduct from their income, when presenting their income tax statement, all the liberal money donations paid on behalf of Onlus organizations, for an amount not higher than 10% of the overall declared income and, anyway, until the maximum amount of
€ 70.000,00 per year (art. 14 paragraph 1 Law Decree 35/05 transformed into Law n. 80 of the 14/05/2005.
As an alternative to income’s deduction, physical people that make liberal payments to Onlus organizations, can benefit from the Irpef deduction, in the extent of 19%, for a maximum amount of € 2.065,83 (lett. i bis, co. 1, art. 15 of Dpr n. 917/1986).
Enterprises can deduct donations made on behalf of ONLUS organizations for an amount not higher than € 2.065,83 or 2% of the declared business income (art. 100 paragraph 2 of D.P.R. 917/86).
Deduction or relief?
Whoever makes a liberal money donation to an Onlus organization, when presenting his income tax statement shall consider if it is more convenient for him to benefit of the tax relief equal to 19% or of the 10% of the overall income’s deduction.
In this last case, the deductible payment will determine, through the reduction of the taxable income, a benefit equal to the maximum aliquot reached by the taxpayer.
In the majority of cases what is more convenient is the new tax relief, because the Irpef marginal aliquot (relevant in the deduction case) is always higher than the deduction’s percentage (relevant in the relief case). It is also possible, if the overall income is very low, to have cases for which the old regulation is more convenient.
Comparison between old and new regulations
For all donations made since the 17th March 2005, when the Law n. 80/2005 known by the name “The more you give, the less you pay” came into effect, it is possible to benefit of this new fiscal relief.
It is important to say that this new tax relief “The more you give, the less you pay”, does not replace the previous tax relieves already existing for the liberal donations on behalf of Onlus organizations, but it joins them, without the possibility of combining the two benefits.
This means that, for the same kind of donation, different benefit’s regulations may apply.
The one foreseen by the Testo Unico of the Income taxes (coming from the art. 13 of Law Decree n. 460/97) consists in an income’s reduction equal to 19% of the paid amount, until a maximum amount of € 2.065,83, for physical individuals; while enterprises (sole traders, limited, unlimited companies, etc) can deduct from the business income an amount not higher than € 2.065,83 or 2 % of the declared income.
The regulation concerning the Law Decree n. 35 of 2005 foresees, as already explained, a deduction on the taxable income