Charitable donations:
tax benefits
Summary table of tax relief for liberal donations to the Associazione “Centro Dino Ferrari” ETS Association
| Beneficiaries | Nature of the Donation | Tax Relief / Benefit | Statutory References |
|---|---|---|---|
| Individuals | Liberal donations in cash or in kind in favor of non-commercial Third Sector Entities (ETS) | Tax deduction from IRPEF (Personal Income Tax) equal to 30% of the donated amount, up to a maximum of EUR 30,000 | Art. 83 paragraph 1 CTS (Third Sector Code) |
| Individuals, entities, and companies | Liberalities in cash or in kind in favor of non-commercial Third Sector Entities (ETS) | Tax deductibility within the limit of 10% of the total declared income | Art. 83 paragraph 2 CTS (Third Sector Code) |
| Individuals and entities subject to IRES | Liberalities in cash or in kind granted in favor of recognized foundations and associations whose statutory purpose is the carrying out or promotion of scientific research activities, identified by decree of the President of the Council of Ministers | Tax deductibility within the limit of 10% of the total declared income, up to a maximum of EUR 70,000 per year | Art. 14, paragraph 1 Decree-Law (D.L.) 35/2005 Prime Ministerial Decree (DPCM) October 9, 2023 |
| Companies and other entities subject to IRES | Funds transferred for the financing of research, as a contribution or liberality in favor of regularly recognized foundations and associations whose statutory object is the carrying out or promotion of scientific research activities, identified by decree of the President of the Council of Ministers | Full deductibility from the income of the donating entity | Art. 1, paragraph 353, Law 266/2005 Prime Ministerial Decree (DPCM) January 19, 2024 |
| Holders of business income | Liberal donations in favor of legal entities that exclusively pursue “scientific research purposes” | Tax deductibility for a total amount not exceeding 2 percent of the declared business income | Art. 100, paragraph 2, letter a) TUIR (Income Tax Consolidated Text) |
NOTE
- The above-mentioned tax benefits cannot be combined with each other and are applicable only if made via bank or postal transfer, debit, credit and prepaid cards, bank and cashier’s checks, or through other payment systems that guarantee traceability and the identification of the donor. Donations made via smartphone applications through authorized Electronic Money Institutions are also admissible, subject to the conditions set forth in Circular No. 7/E of the Italian Revenue Agency (Agenzia delle Entrate) dated June 25, 2021.
- Pursuant to the Decree of the Ministry of Economy and Finance of February 3, 2021, and provided that the prerequisites established therein are met, the “Centro Dino Ferrari” ETS Association will transmit data relating to liberal donations received from individuals to the Italian Revenue Agency, for the purpose of automatic inclusion in the pre-compiled tax return of the donating subject. The data subject may object to the transmission of data by communicating the opposition directly to the beneficiary of the liberal donation at the time the donation is made, or in any case by December 31 of the year in which the donation was made, or by filling out and sending the specific form to the Italian Revenue Agency from January 1 to March 20 of the year following that in which the donation was made.
- Liberal donations in kind must be evidenced by a written deed containing the donor’s declaration containing an analytical description of the donated assets, with an indication of their respective values, as well as the declaration of the recipient of the donation containing the commitment to directly use the assets themselves for the performance of the statutory activity, for the exclusive pursuit of civic, solidarity, and social utility purposes. To determine the value of the donated asset, reference is made to the normal value of the asset being donated, determined pursuant to Art. 9 of the TUIR. If this value is higher than EUR 30,000, or if, due to the nature of the assets, it is not possible to infer their value on the basis of objective criteria, the donor must obtain a sworn appraisal certifying the value of the donated assets, bearing a date not prior to ninety days before the transfer of the asset, and deliver a copy to the recipient of the donation.
However, it is not necessary to produce an appraisal in the following cases:
- if the liberal donation concerns a capital asset (instrumental asset), the amount of the deduction or deductibility is determined with reference to the residual tax value at the time of the transfer;
- if the liberal donation concerns assets whose production or exchange is directed by the business activity, or raw and subsidiary materials, semi-finished products and other movable assets (excluding capital assets) purchased or produced to be used in production, the amount of the deduction or deductibility is determined with reference to the lower of the normal value and the value resulting from the valuation of inventory inventories pursuant to Art. 92 of the TUIR.