The changes introduced by Decree no. 73/2022 in the so called “third sector”

With the so called “Simplifications” Decree no. 73/2022 the taxation system for “third sector” entities changed.

The new taxation system

The main changes introduced by the Simplifications Decree concern the taxation rules contained in Title X of the third sector code.

More precisely, a definition of “actual costs” has been included under Article 79, paragraph 2, and at paragraph 2 bis the prerequisites that allow the entity to maintain the nature of non-commercial entity have been specified.

Paragraph 4, then, provides for the loss of the tax benefits in relation to direct tax for “third sector” entities when they become commercial entities.

Also, paragraph 6 has undergone some changes, of which the main one is that activities directed exclusively for the benefit of members and their family are considered non-commercial.

Amendments with regard to direct taxes

Article 82 paragraph 3 provides for a fixed registration tax for “third sector” entities.

It has been introduced a paragraph 5 bis according to which financial products and current accounts held abroad by “third sector” entities are exempt from the tax on the value of foreign financial assets.

Deductions for direct donations

Article 83 of the “third sector” code introduces specific deductions in favor of natural or legal persons who intend to make donations in cash or in kind to “third sector” entities.

Tax regime for voluntary organizations and philanthropic entities

The amendments grant philanthropic entities exemption from IRES on property income (Art. 84)

Tax regime for association of social promotions

The Simplifications Decree amended Article 85 of the “third sector” code, specifically:

  • it extends to mutual aid organizations the benefits provided for association of social promotion
  • it increases the categories of subjects in favor of which non-profit organizations can carry out activities benefiting from tax benefits

Companies record books

The amendments to Article 87(1)(b) extend the obligation to keep accounting records to fundraising organizations.

The de minimis

Certain tax benefits are defined as state aid and are available within the limits set for businesses providing services of general economic interest.

Postponement of the deadline to align the articles of association of voluntary organizations and association of social promotion associations

The deadline to align the articles of associations of voluntary organizations and associations of social promotion to the new “third sector” regulations has been extended to 31.12.2022