The Catalan bill incorporates patronage through the provision of services and extends deductions

He PDeCAT has announced a agreement with the Government, “after four failed attempts”, to approve a new patronage law that would be approved by Parliament in this same period of sessions and would be in force for all years from January 1, 2024.

This pact materializes from the bill registered by the Catalans in Congress, which incorporates the provision of services as a new mechanism for collaboration with NGOs, it allows a consideration of a maximum of 25,000 euros, and increases the deduction percentages. This standard will modify the one that has been in force for 21 years.

Among the contributions of the law, proposed by PDeCAT, the deputy Sergi Miquel has highlighted that “incorporates the provision of services as a new collaboration mechanism”. Until now you could only be a patron if there was a financial transfer.

Miquel has given the example of an architectural firm, a design studio or a communication office that may altruistically provide their services to a non-profit entity, instead of making a monetary contribution.

Another novelty of the law is that will allow the “symbolic” consideration of goods or services, provided they do not represent 15% of the value of the donation and with a maximum limit of 25,000 euros.

“Until now, there were patrons who contributed money to festivals or cultural events and not a single ticket could be given as a thank you. This meant that many entities could not use the patronage law to establish a link with their sponsors,” he said. Michael specified.

In addition, crowdfunding is encouraged and deduction percentages are increased. As regards individuals, it rises by 100 euros, going from 150 to 250 euros, the base on which 80% of the donation can be deducted in personal income tax.

“Today a citizen who collaborates with an average contribution of 12 euros per month to an NGO ends up paying around 150 euros, which is the ceiling established by law and, of these, he recovers 120, with which the total cost, the final contribution is 30 euros. With our law, adding only 20 euros to these 30 euros, paying 50 euros, the contribution to the entity triples,” explained Miquel.

In the case of legal persons, deductions in Corporate Tax go from 35 to 40%. And in both cases, the loyalty period necessary to benefit from a higher deduction percentage is reduced from four to three years.

On the other hand, the modalities of exempt economic exploitations are expanded, when they are developed by non-profit entities, in the following activities: research, development and innovation (R+D+I), social and labor insertion services for people at risk of exclusion social and education linked to students with high abilities.

The PDeCAT spokesman, Ferran Bel, has shown his gratitude to the Finance Minister for her “predisposition” to reach an agreement on this law. “We are satisfied, it is not one hundred percent of our initial proposal but, even in some aspects, it is much better”has valued, in a press conference in Congress.

PRESENTATION THIS THURSDAY, COMMISSION NEXT WEEK

As specified, if there are no changes, the bill will be approved this Thursday in a presentation, it will be ratified in committee next Wednesday and will be transferred to the Senate, so it is expected that it will be approved within this period of sessions.

As for the budget impact, Bel has indicated that “there is an impact” but “minimal” and has defended its “multiplier effect in society”.