Taxation on non-profit entities

Abstract

This work consists of the analysis of Non-Profit Organizations (NPO) from the tax the special regulations point of view. It will focus mainly on the Law on Patronage and on Corporate Income Tax (CIT), and more briefly on the Tax on Economic Activities (TEA) and Value Added Tax (VAT). The objective of this paper is to clarify the characteristics of a non-profit entity, and consequently, why they need a special tax regime. To do this, we will study the laws enacted in Spain on the taxation of NPOs through the analysis of the BOE regarding the promulgation of laws affecting these entities in tax matters, deepening, above all, Law 49/2002, of 23 December, Law 27/2014, of 27 November and Law 37/1992, of 28 December.