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Fiscal benefits

Italian tax regulations stipulate that taxpayers resident in Italy for tax purposes are eligible for certain tax benefits (in the form of allowances from gross taxable income or gross tax deductions) when they make donations to non-profit organisations. These benefits are analysed below, depending on the subjective characteristics of the donor.
 

Natural persons not involved in business:

  1. annual deductibility from gross tax in an amount equal to 26% of the donation, up to a maximum amount of € 30,000 (maximum allowable amount € 7,800), as envisaged by art. 15, paragraph 1.1 of Presidential Decree no. 917/86 (TUIR -Consolidated Law on Income Tax);
  2. annual deductibility from gross tax in an amount equal to 30% of the donation, up to a maximum amount of € 30,000 (maximum allowable amount € 9,000), as envisaged by art. 83, paragraph 1 Legislative Decree no. 117/2017 (CTS);
  3. annual deductibility from net income within the limit of 10% of declared income as envisaged by art. 83, paragraph 2 Legislative Decree no. 117/2017 (CTS);​
     

All abovementioned tax benefits:

  • are available if donations are made by traceable means of payment (such as, for example, bank transfers, credit and debit cards, including prepaid cards, bank cheques and banker's drafts, or through a post office);
  • are to be considered as alternatives to each other;
  • are available if the taxpayer does not already benefit from the tax relief envisaged by Article 10, paragraph 1(g) of the TUIR in respect of donations to NGOs for initiatives aimed at developing countries;
  • are available if the taxpayer does not already benefit from the tax relief envisaged by Article 83, paragraph 1 of the Legislative Decree no. 117/2017 (CTS).
     

Legal persons and Businesses in general (including natural persons involved in business):

  1. deductibility for amounts not in excess of € 30,000 or, if greater, of 2% of the declared business income, as envisaged by art. 100, paragraph 2(h) of the TUIR;
  2. deductibility within the limit of 10% of the declared income as envisaged by art. 83 paragraph 2 of Legislative Decree no. 117/2017 (CTS).

The two types of benefits referred to above are to be considered as alternatives to each other