🇬🇧 How to deduct private donations in Italy

Making a donation to a non-profit sanctuary like Sotto la Panca APS is not only an act of great ethical value, but also an opportunity to obtain concrete tax benefits if you are a tax resident in Italy. In this article, we will explain in a simple way:

• How donations are treated for tax purposes
• The difference between tax deduction and tax allowance
• The legal requirements for obtaining the benefit (traceable payments, receipts)
• The limits set by law (e.g., 30% credit up to €30,000 annually)

📅 Tax Benefits for Private Donors

If you are a private citizen residing in Italy and pay taxes here, you can deduct or allow donations made to recognized non-profit organizations like Sotto la Panca APS.

Italian legislation – specifically Article 83 of Legislative Decree 117/2017 (Third Sector Code) – provides for two alternative options:

📈 1. 30% Tax Allowance (Tax Credit)

You can deduct 30% of the donated amount from your IRPEF, up to a maximum of €30,000 per year.

Example: If you donate €1,000 to Sotto la Panca, you get a tax reduction of €300.

The maximum deductible amount is therefore €9,000 per year (30% of €30,000). Any excess amount does not generate further credits.

💸 2. Deduction from Income (up to 10%)

Alternatively, you can deduct the donated amount from your taxable income, i.e., reduce the base on which the tax is calculated.

The deduction is valid up to 10% of your total annual income. If you donate more than 10% of your income, the excess portion is not deductible that year, but you can carry it forward for the next four years.

🧳️ Tax Allowance vs. Tax Deduction: Which is Better?

• The tax allowance directly reduces the amount of taxes to be paid (30% of the donated amount).
• The tax deduction reduces taxable income, so the tax effect depends on your IRPEF tax bracket.

In general:

• If you have a lower income or make small donations, the 30% tax allowance is more advantageous.
• If you have a higher income, the 10% tax deduction can result in greater savings.

Always consult your accountant to decide which option to choose (they are not cumulative).

💳 Requirements for Obtaining Tax Benefits

To be eligible for tax deductions/allowances:

1. Donation to a qualified entity: Sotto la Panca is an APS registered with RUNTS, making it an eligible entity.
2. Traceable payment: Bank transfer, credit/debit card, PayPal, postal order, or non-transferable check.
3. Cash donations are not allowed for tax purposes.
4. Receipt or attestation: Keep proof of payment (bank statement or entity receipt). Sotto la Panca can provide a receipt with the date, amount, and reason "erogazione liberale" (liberal disbursement).
5. Tax return: Indicate the amount in your Modello 730 or Redditi PF. Choose whether to opt for the tax allowance or the tax deduction (only one of the two).

⚡️ Limits and Practical Tips

• Tax allowance: maximum of €9,000/year (on €30,000 donated)
• Tax deduction: maximum of 10% of income (no absolute cap)

If you donate large sums, check with your consultant about the possibility of spreading the amount over several years or carrying forward the excess to subsequent years.

🌟 Donate with Confidence, Donate with Advantage

Supporting Sotto la Panca means helping animals rescued from slaughter, but also benefiting from significant tax relief.

Every euro donated provides concrete help — and thanks to Italian legislation, it partially returns to you in the form of savings.

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For specific tax questions, please consult your advisor or visit our FAQ center.

Thank you for your support ❤️