Seal of cultural patronage

 In Mecenatge

Culture and Patronage Seal

This is an initiative of the Ministry of Culture and Sport, through the Culture and Patronage Unit (dependent on the Subdirectorate General for the Promotion of Cultural Industries and Patronage), whose objective is to encourage cultural patronage, giving visibility to those projects that stand out especially in this field.

The Culture and Patronage seal is a direct and functional graphic representation that allows the immediate identification of those projects that contribute to the promotion of cultural patronage among Spanish society. Intramurs, Centro Niemeyer and MECA Mediterráneo Centro Artístico have recently received this recognition.

What is Patronage?

The SAR defines patronage as “the protection or assistance given to a cultural, artistic or scientific activity”.

The contribution of the private sector to the achievement of aims of general interest is recognised in our regulations through Law 49/2002, of 23 December, on the tax regime for non-profit organisations and tax incentives for patronage. For the purposes of this Law, patronage is understood as the private contribution to the financing of activities of general interest.

The promotion of patronage initiatives is based on tax incentives for donations and a special tax regime for Non-Profit Entities (NPOs). Title III of the Law regulates the tax benefits applicable to donations, donations and contributions made in favour of the beneficiary entities.

Contributions

What contributions can be made?
Donations and donations of money, goods or rights.
Membership fees to associations that do not correspond to the right to receive a present or future benefit.
The constitution of a real right of usufruct on goods, rights or values, carried out without consideration.
Donations or donations of goods that form part of the Spanish Historical Heritage, that are registered in the BIC or General Inventory register.
Donations or donations of cultural goods of guaranteed quality in favour of entities that pursue among their aims the carrying out of museum activities and the promotion and diffusion of the artistic historical heritage.

Beneficiaries

Who can benefit from patronage?

Foundations.
Associations declared to be of public utility.
Non-governmental development organisations referred to in Law 23/1998, of 7 July, on International Cooperation for Development.
Delegations of foreign foundations registered in the Register of Foundations.
The Spanish sports federations, the regional territorial sports federations integrated into them, the Spanish Olympic Committee and the Spanish Paralympic Committee.
The federations and associations of the non-profit entities referred to in the previous paragraphs.
The State, Autonomous Communities and Local Entities, as well as autonomous State Bodies and similar autonomous entities of the Autonomous Communities and Local Entities.
Public universities and the colleges attached to them.
The Instituto Cervantes, the Institut Ramon Llull and the other institutions with analogous aims of the Autonomous Communities with their own official language.
Public Research Bodies dependent on the General State Administration.

Each year, the General State Budget Act establishes a series of priority patronage activities. Donations in favour of these activities obtain a deduction of 5% in addition to the general tax incentives.

Donations from individuals

What tax incentives exist for donations made by individuals?
Micro-patronage: the first 150 euros donated have a deduction of 75% in the total amount of personal income tax.
The amount donated that exceeds 150 euros has a deduction of 30% in the quota.
Loyalty: a 35% deduction may be applied to donations (instead of the general 30%) provided that donations have been made for the same or a greater amount to the same entity in the two immediate previous tax periods.
The deduction has a limit of 10% of the taxable income.

Each year, the General State Budget Law establishes a series of priority patronage activities. Donations in favour of these activities obtain a deduction of 5% in addition to the general tax incentives mentioned above.

Donations by legal entities

What tax incentives exist for donations made by legal persons?
The amount donated has a deduction of 35% in the Corporation Tax quota.
Loyalty to donations: a deduction of 40% (instead of the general 35%) may be applied provided that donations have been made for the same or a greater amount to the same entity in the two immediate tax periods.

The deduction is limited to 10% of the tax base for the tax period. Amounts exceeding this limit may be applied in tax periods ending in the ten immediate and successive years.

Each year, the General State Budget Law establishes a series of priority patronage activities. Donations in favour of these activities obtain a deduction of 5% in addition to the general tax incentives mentioned above.

Practical effects on personal income tax

What is the practical translation of donations?

If an individual donates 150 euros to a non-profit entity that is among the possible recipients of patronage:

The taxpayer deducts 112.5 euros (75% of the fee) from his or her personal income tax.
In other words, the cost of a donation of 150 euros is really 37.5 euros. Therefore, the chosen entity receives 150 euros, of which 37.5 come from the donor and 112.5 are an indirect subsidy from the Treasury.

If you donate 500 euros:

From the first 150 euros, 75% is deducted, so the taxpayer recovers 112.5 euros.
Of the remaining 350 euros, 30% is deducted, so the taxpayer recovers 105 euros.
Therefore, in total the taxpayer recovers 217.5 euros.

If you donate 500 euros and it is a loyal donation:

From the first 150 euros, 75% is deducted, so the taxpayer recovers 112.5 euros.
From the remaining 350 euros, 35% is deducted, so the taxpayer recovers 122.5 euros.
Therefore, the taxpayer recovers a total of 235 euros.

If you donate 500 euros to a priority activity of patronage and there is loyalty in the donation:

From the first 150 euros, 80% is deducted (the usual percentage increases by 5%), so the taxpayer recovers 120 euros.
Of the remaining 350 euros, 40% is deducted (the usual 30% increases by 5% for loyalty in the donation and another 5% for being a priority activity of patronage), so that the taxpayer recovers 140 euros.
Therefore, the taxpayer recovers a total of 260 euros.





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