Since 1988, the La Stampa - Specchio dei tempi Foundation has been registered in the Onlus Registry. All donors who support us with traced donations (i.e. not anonymous, and not in cash) enjoy tax benefits in Italy, in the form of deductions or allowances. The deduction reduces the taxable amount: the deduction is applied before the tax is calculated. The allowance, on the other hand, reduces the tax: it acts on the calculated gross tax and leads to the net tax due.
The result, in both cases, is a tax discount. In practice, donating is convenient two times over, because it does good and reduces the tax burden. These benefits are regulated by the Legislative Decree 460/1997 and a Law Reform (Legislative Decree 117/2017) in force from January 1, 2018, which made it even more advantageous to help non-profit organizations such as Specchio dei tempi. The Coronavirus emergency has further increased the concessions on donations, especially for companies. Dozens of companies have thus turned to Specchio, which has been at the forefront since the beginning of the pandemic and in a few days realizes tailor-made projects for the most generous partners.
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The Covid-19 Regulation
Tax incentives are provided for those who make donations, in cash or in kind, in support of measures to combat the Coronavirus emergency.
Article 66 of the Prime Ministerial Decree of 17 March 2020, n. 18, provides that:
For donations in cash and in kind, made in 2020 by natural persons in favour of legally recognized non-profit foundations and associations, aimed at financing interventions in the field of containment and management of the epidemiological emergency from COVID -19 there is a deduction from the gross tax for income tax purposes equal to 30%, for an amount not exceeding 30,000 euros. Therefore, the maximum amount of subsidized donation is equal to 100,000 euros.
Example. If a person donates € 1000, he can reduce his taxable income by €1000 (but up to a maximum of 30% of the total declared) and therefore, depending on the applicable income tax bracket, obtain savings that increase as the income increases
For donations in cash and in kind in support of measures to combat the epidemiological emergency from COVID-19, carried out in the year 2020 by the owners of business income:
Article 27 of the law of 13 May 1999, no. 133, that is, the donations in cash made in favour of populations affected by public calamities or other extraordinary events even if they occurred in other States, through foundations, associations, committees and entities are deductible from the company income in full and are not subject to gift tax.
For IRAP purposes, these payments are deductible in the year in which the payment is made. Consequently already this year.
Example. If a company donates €1000.00, it can consider this amount as a cost and consequently decrease the profit on which taxes are paid for the entire donation, without limits. There are therefore no limits to the deductible amount.
In summary:
- donations from private individuals: deduction of 30% up to 30,000 euros
- business donations: fully deductible from business income without limits + deductible from IRAP already this year -
How to get tax incentives for Covid-19
In order for the taxpayer to deduct from the sum to be paid, it must be passed through a financial intermediary, i.e. either the postal channel (deposit slips, for example) or the bank channel (bank transfer, cheque, credit cards, debit cards, online payments). What you will need to take to your accountant or CAF is postal or bank evidence (including postal, bank and credit card statements). Therefore, it is not possible to take advantage of tax concessions for cash donations and untracked donations. The donors of Specchio dei tempi can request a receipt from the foundation by writing to specchiodeitempionlus@lastampa.it. For donations made online on our site it is not necessary to request a receipt: it is automatically sent by e-mail a few seconds after the donation (check also the Spam box).
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Deduction: how does it work for individuals and companies?
The deduction reduces the taxable amount and is therefore applied before the tax is calculated. With the reform for donations made from 1 January 2018 in favour of Onlus, (Article 83 of Legislative Decree 117/2017), if the donor is an individual, he can deduct the donation, without absolute limits, but within 10% of the total declared income.
Example. If a person donates €100, he can decrease his taxable income by €100 (but up to a maximum of 10% of the total declared) and therefore, depending on the applicable IRPEF bracket, obtain savings that increase as the income increases.
If the donor is a company, it can deduct without absolute limits up to a maximum of 10% of the total declared income. The same facility is provided for donations between associations and, in general, for donations to non-profit organizations by companies. In the event that the total declared income is reduced by further deductions to such an extent that the deduction to which one would be entitled (for the donation) cannot be fully enjoyed, the donor company can deduct any amount not used in subsequent years until to the fourth following the first declaration.
Example. If a company donates € 1000 it can consider this amount as a cost and consequently decrease the profit on which taxes are paid.
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How to take advantage of the deductibility
Cash payments and anonymous payments are not tax deductible. To take advantage of the benefits it is necessary that the donation be made by bank transfer, debit or credit card, bank and cashier's cheques, postal current account or with an online payment.
What you will need to take to your accountant or CAF is postal or bank evidence (including postal, bank and credit card statements). Therefore, it is not possible to take advantage of tax concessions for cash donations and untracked donations. The donors of Specchio dei tempi can request a receipt from the foundation by writing to specchiodeitempionlus@lastampa.it. For donations made online on our site it is not necessary to request a receipt: it is automatically sent by e-mail a few seconds after the donation (check also the Spam box).
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Tax allowance: how does it work?
The allowance reduces the tax: it then acts on the calculated gross tax and leads to the net tax due. With the reform for donations made from 1 January 2018 in favour of non-profit organizations (art.83 of Legislative Decree 117/2017), individuals are allowed to choose between two different and alternative tax incentives. The allowance, or the subtraction from IRPEF of 30% of the donation up to a maximum of €30,000 (i.e. €100,000 of donation).
Example. If a person donates €100.00 he can deduct €30.00 from the taxes due
Better to deduct or subtract? For incomes exceeding 29,000 euros it is more convenient to apply the deduction.
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How to take advantage of the deduction
Cash payments and anonymous payments are not tax deductible. To take advantage of the benefits it is necessary that the donation be made by bank transfer, debit or credit card, bank and cashier's cheques, postal current account or with an online payment. What you will need to take to your accountant or CAF is postal or bank evidence (including postal, bank and credit card statements). Therefore, it is not possible to take advantage of tax concessions for cash donations and untracked donations. The donors of Specchio dei tempi can request a receipt from the foundation by writing to specchiodeitempionlus@lastampa.it. For donations made online on our site it is not necessary to request a receipt: it is automatically sent by e-mail a few seconds after the donation (check also the Spam box).
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