Changes in Corporation Tax for nonprofits

On February 28, 2015 it was published in the BOE the Royal decree law 1/2015, of mechanism of second opportunity, reduction of financial load and other measures of social order .

From the point of view of entities partially exempt from Corporation Tax, this Royal Decree-Law contains an important measure, as it establishes, with effect from 1 January 2015, the non-obligation to submit a declaration of the Tax under certain assumptions.

Specifically, non-profit entities and institutions not covered by Law 49/2002 will not be required to file a corporation tax return if they meet the following three requirements at the same time:

  1. a) That their total income does not exceed 50,000 euros per year.
  2. b) That the income corresponding to non-exempt income does not exceed 2,000 euros per year.
  3. c) That all the non-exempt incomes they obtain are subject to withholding.

It is very important to note that, despite the amendment introduced by this Royal Decree-Law, nothing has changed in relation to the following points:

– The income obtained by this type of entity from the operation of bar bars, the realization of concerts, exhibitions, extracurricular activities for which entrance fee / price / fee is charged, the sale of clothes, textbooks, lottery, merchandising, etc. they are still considered non-exempt income, and therefore oblige from the first euro cent the presentation of the Corporation Tax.

– The exemptions to the Value Added Tax for social assistance services, education, provision of services to members, services related to sport, cultural services, etc. are not modified. which apply to many of the nonprofits.

– Nor does it modify the obligation to pass on VAT and present the corresponding models in the case of deliveries of goods and services not exempt from VAT.

– The obligation to file form 347 in the event of carrying out a business or professional activity, or being a social entity in accordance with article 20. Three of the VAT Law, remains.

Finally, we remind you that non-profit entities that are not required to file Corporation Tax will not be required to keep accounts either.

The information we provide you is an information note issued by the consultancy “Maristany & Osés”.