Law of cultural
The Foral Law of Cultural Patronage of Navarra offers significant tax benefits to those companies and individuals who collaborate with cultural and artistic projects, that are considered to be of social interest and which have the MECNA distinction.
By awarding the MECNA distinction, the Government of Navarra recognises the commitment of citizens, the business community and society to the promotion and funding of culture.
Why become
a Patron?
Social commitment
to culture
Shared vision
of the cultural project
Tax incentives
for cultural patronage
Who can you allocate your donation to?
To all those entities and artists that boast the MECNA distinction.
How can you contribute to the development of MECNA projects?
There are three ways to support Navarra’s cultural development:
- · DONATION: Monetary contribution, of goods or rights, or the provision of services free of charge.
- · LOAN FOR USE: Free and temporary lending of assets of cultural interest, premises for activities, quality artworks and others.
- · COLLABORATION AGREEMENTS: Between those who make contributions and those who receive them who, in exchange, agree to publicise the contribution.
Tax incentive
Individuals
Personal income tax deduction: 80% on the first 150 euros contributed and 40% on the rest.
Example:
| Amount | Deduction Amount |
|
|---|---|---|
| Donation | 50€ | 40€ |
| Donation | 150€ | 120€ |
| Donation | 500€ | 260€ |
| Donation | 1000€ | 460€ |
The limit of 150 euros will operate per taxpayer and in each tax period. The basis of the deduction will be computed for the purposes of the limit referred to in Article 64.1 of the Personal Income Tax Law.
Companies:
The amount contributed decreases the taxable base by considering this expense deductible and, in addition, a deduction of 30% of the net tax payable is obtained for the first 300 euros and 20% for the following 300 euros.
Example:
A small company to which a tax rate of 23% is applied allocates an amount of 3,000 euros to a Mecna project. In the corporate income tax return it presents the following operating account:
REVENUES
| Sales or invoicing: | 300.000€ |
| Other income: | 30.000€ |
| Total: | 330.000€ |
EXPENSES
| Salaries and expenses: | 80.000€ |
| Purchases: | 70.000€ |
| Other expenses: | 5.000€ |
| Includes sponsorship: | 3.000€ (Deductible expense, does not pay 23%.) |
| Total: | 1550.000€ |
TAXABLE BASE
330.000€ – 155.000€ = 155.000€
Tax rate: 23%
TAX SAVINGS OF 23% ON €3,000:
690€
INTEGRAL FEE
40.250€
DEDUCTIONS IN QUOTA FOR DONATIONS OF €3,000:
| On the first 300€ to be deducted 30%: | 90€ |
| On the remaining €2,700 to be deducted 20%: | 540€ |
FEE PAYABLE
39.620€
Tax savings for a contribution of 3,000€.: 1.320€
(3.000×23% + 300×30% + 2.700×20% = 690 + 90 + 540
* The applicable tax benefits are subject to the limits established in Article 17 of the Foral Law 8/2014, on Cultural Patronage in Navarra.
