What are the tax breaks for company donations?

 

Tax breaks for company donations can be of different types. Companies can deduct the donated amount without an absolute limit but within 10% of the total declared income (without the limit of 70,000 euros, as previously envisaged).

Furthermore, always within the limit of 10%, in the event that the deduction exceeds the value of the total income declared net of other deductions, the unused portion of the deduction can be reported in subsequent declarations, up to the fourth subsequent tax period ( example, a donation made in 2018 can be discounted even until 2023).

For the donor company, the liberal disbursement follows the cash principle.

 

 

What are the tax breaks for donations from individuals?

 

The tax breaks for donations from individuals are of two types.

In fact, natural persons can choose whether:

  • deduct the amount (for a maximum of € 30,000 from the donation) to 30%, or

  • deduct the donated amount without an absolute limit but within 10% of the total declared income.

 

Between deduction and deduction it can be said that those who have an income greater than 30,000 euros have greater convenience to deduct. Consider the fact that the person will choose when to fill out the 2019 tax return whether to apply the deduction or deduction: as for companies, in the case of application of the deduction it will be possible for the taxpayer to bring the deduction part to future declarations not enjoyed.