HOW DONATIONS ARE TAX-DEDUCTIBLE

The new legislation increases the rate at which donations to NPOs and charities can be deducted. It was previously set at 19%, and has now been increased to 26% for the 2014 tax year, up to a maximum of € 2065 (for individuals) or up to 2% of the company’s declared income (Ref: art.100, section 2, lett. H) D.P.R. n° 917/86 of the Testo Unico delle Imposte sui Redditi [Taxes Consolidation Act]). Indeed, when you present your tax return, your taxable income may be reduced by detracting the amount donated in proportion to the rate applied. For donations to NPOs, the maximum deduction is calculated with a limit of 10% of the overall income declared, and in any case no more than € 70,000.