Modifies The Law Nâ ° 19.885, In Terms Of Donations With Tax Benefits

Original Language Title: MODIFICA LA LEY Nº 19.885, EN MATERIA DE DONACIONES CON BENEFICIOS TRIBUTARIOS

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"(Artículo 1º.-Introdúcense en la ley Nº 19.885, las siguientes modificaciones: 1) replace your heading that follows:"Encourages and rule the good use of donations that give origin to tax and LOS extends to other purposes social and public benefits"."

(2) replace the heading of its title I, which follows: "of tax benefits for individuals and entities who donate to institutions that provide direct services to people with limited resources or with disabilities and mixed fund of Social support".

(3) replacements, all the times that appear in the text, the words "disabled" and "disabled" by the expression "disabled".

(4) replaced, every time that appears in the text, the word 'Fund', when it is relative to the mixed fund of Social support established in article 3 of this law, by the word 'Fund'.

(5) replace the article 1st, by the following: "article 1.-the taxpayers of the first category tax of the income tax Act, contained in the article 1º of Decree Law No. 824, 1974, to declare your effective income on the basis of full accounting and non-State enterprises or in which it or its institutions participate" , which carried out donates money directly to institutions mentioned in article 2 or to the Fund established in article 3, hereinafter 'the Fund', may deduct indicated tax credits that are later designated; all this according to the procedures, requirements and following conditions are established: 1. donations can no be made to institutions in whose directory join the donor. In case that the donor is a legal person, may not make donations to institutions whose directory involve partners or directors or shareholders holding 10% or more of the share capital.

The Council established in article 4 ° may exempt from this prohibition to those who donate to institutions that are accredited have activities carried out from those indicated in this law by not less than two years, and demonstrate that its work in favor of people from low-income or disabled is not conditioned or directed to benefit candidates for posts of popular election.

2. not entitled to the tax credit referred to in this article, the donations made by candidates for posts of popular election to institutions which carry out their work in the territories where had presented their nominations from six months prior to the date of registration of the application to the Electoral service and up to six months after the selection concerned has been made. They shall be entitled to the tax credit established in this law nor those donations made within the indicated time period, they were made to institutions whose directory involve the candidate or those made by donor corporations in whose directories designated candidates participate.

3. the total amount of donations giving the right to this benefit will be the designated in article 10 of this law.

4. these donations will be freed of the formality of the overtone and is exempted from inheritance and donations tax established by law Nº 16.271.

5. donors must inform the internal revenue service, the amount of donations, the address, the Ruth and the identity of the grantee in the form and time limits determined by the service. Information provided in compliance with prescribed in this issue, will be protected in the secret established in article 35 of the tax code. Institutions and the Fund, as donors, must provide account after receiving the donation using a certificate that will be extended to the donor, according to specifications and formalities that points to the internal revenue service.

6. the grantee granted certificates by donations that do not meet the conditions laid down in this law or that allocate money from donations for purposes not covered by the respective project or a project other than that was that the donation, must pay to the Treasury the tax credit used by the donor in good faith. Administrators or representatives of the grantee shall be jointly and severally responsible for the payment of the tribute and resets, interest and fines to be determined, unless they prove to have been opposed to the acts which give reason to this sanction or that had no knowledge of them.

7. donations of an amount less than 1,000 monthly tax units made directly to institutions mentioned in article 2 or in the background, will be entitled to a credit equal to 50% of such donations against tax referred to in subsection. Case of the first category tax taxpayers, this benefit applies only when the donations that are made in the same year are carried out at least at two institutions distinct, can not exceed an amount equivalent to 700 monthly tax units to none of them.

8. donations of an amount equal to or greater than 1,000 monthly tax units, in which at least 33% of the total is performed in the background, and can the donor propose area projects or programs to which that percentage in the way established the regulations shall be that referred to in article 6 °, they are entitled to a credit equal to 50% of the amount of the donation. Donations of an amount equal to or greater than 1,000 monthly tax units, in which a percentage less than 33% of the total is performed in the background, will be entitled to a credit equivalent to 35% of the amount of the donation.

9. to effect in the previous numbers, all donations of an amount less than 1,000 monthly tax units made by a donor in unabridged form to any institution of those mentioned in article 2, in the same calendar year, will be considered a single donation for the total amount donated in that period for the purpose of calculating the tax credit.

10 nevertheless stated in the previous numbers, taxpayers in first class who made donations according to what is established in the number 7-in this article, to institutions only providing services such as those listed in paragraphs 1 and 2 of article 2 of this law, may, in addition, make donations of up to 1,000 monthly tax units to projects and programmes aimed at the prevention or rehabilitation of alcohol or drug addictions, certified according to the provisions of the second paragraph of article 5 °, completing, in total, up to 2,000 monthly tax units. In this case, these donations will also have a credit equivalent to 50% of the donation. This benefit will only apply when these donations are earmarked in the same year at least two institutions distinct, may not be the same who have received donations according to the number 7-this article, and without a single donation exceeds the amount equivalent of 700 monthly tax units.

First class taxpayers who make donations of an amount equal to or greater than 1,000 monthly tax units to projects or programs aimed at the prevention or rehabilitation of addictions of alcohol or drugs, certified according to the provisions of the second subparagraph of article 5, in which at least 25% of the total of the donation has been carried out in the background they will have a right to a credit equal to 50% of the amount of the donation. If not it will bring to the Fund or the contribution is less than 25%, the credit will be equal to 40% of the amount of the donation. Where to make donations to the Fund, the donor may propose the area of project and programs that will support your donation, in the way established the regulations referred to in article 6.

11. the credit that is this article just may be inferred if the donation is included in the respective tax base corresponding to the income of the year in which was materially donation.

12. in any case, the credit by the total of donations from a same taxpayer may exceed the amount equivalent to 14,000 monthly tax units a year.

13. donations that is this article in part giving the right to credit, will reset as provided for interim payments required of the Act on tax income, from the date incurred in the cash disbursement.

14. that part of the donations that cannot be used as credit, shall be deemed an expense necessary to produce income, according to the provisions of article 31 of the income tax act. "."

(6) add the following article 1 Bis: "article 1 Bis.-to the extent that compliance with the procedures, conditions and requirements laid down in this law, shall be entitled to the same benefits as referred to in the previous article, for the donations carried out in the terms established there, the complementary Global tax taxpayers who determine their income in accordance with the provisions of article 50 of the law on income tax on the basis of their cash spending, while those taxpayers from the referred tax declaring on the basis of alleged spending, and affects the tax referred to in number 1 of article 43 of the same legal text, they will be entitled only to the credit against the respective tax.
For the purposes of exercising the benefits previously referred, taxed taxpayers in accordance with the provisions in number 1 of article 43 must submit an annual statement in the form and term determined by the internal revenue service, updating referred monthly tax that had been retained him, considering the consumer price index variation occurred between the last day of the month previous to the one in which such retention was made and the last day of the month prior to the term of the relevant year. The amount that is will fall you as credit 50% of the donation with the maximum laid down in this law, and proves too much, this will return in accordance to the provisions of article 97 of the law on income tax.

Taxpayers referred to in this article, will be freed from the duty of information established in number 5 of article 1º, notwithstanding which shall keep in his possession the certificate that returned to the grantee realizing the donation carried out pursuant to the aforementioned provision, and present it to the internal revenue service when it required for the purposes of credit the respective donation. For its part, the donees who receive donations from these contributors in accordance with this law shall inform the internal revenue service, in the form and time this body established by resolution, the amount of donations, the address, the Ruth and the identity of the donor. "."

7) amending article 2, in the following sense: to) modify the first subsection, in the following way: i) Insert, between the word "regulation" and followed that happens, the expressions "and have been qualified as of social interest by the Council, pursuant to article 4. "In addition, educational establishments that have projects aimed at the prevention or rehabilitation of addictions of alcohol or drugs, to their students may receive these donations and or proxy", replacing the conjunction "and" after the word "disabled", with a comma.

((ii) replaced at number 3), the phrase "the rehabilitation of drug addicts" with the following: "the prevention or rehabilitation of addictions of alcohol or drugs".

(b) add the following final paragraph: "for the purposes of credit the good use of donations referred to in article 1, the donating institution should be a book of donations, according to what point the regulation referred to in article 6 °. In any case, the referred book must declare, for each donation, at least, the name of the donor, number certificate issued, total amount of the donation and the same destination. Also you must annually prepare a report on the State of revenues from donations and the detailed use of resources, according to the contents that sets the internal revenue service, which must be submitted to this service within the first three months of each year. Failure to comply with the provisions of this subsection shall be punished in the manner prescribed in paragraph 2. ° of article 97 of the tax code, to be jointly and severally responsible for the payment of the respective fine administrators or legal representatives of the grantee. "."

((8) amending article 3, in the following sense: to) in your paragraph first, replaced the expression "mixed fund of social support" by "Mixed Social Support Fund", and delete the phrase "hereinafter" the Fund ", the".

(b) in the second paragraph, replace the expression "number 2" by "the numbers 7, 8 and 10".

(c) in its third paragraph, add after the separate dot (.), which happens to be followed, the following: "determination of 5% of the Fund, above, will be held in the form indicating the regulations.".

9) amending article 4, in the following manner: to) Introducense in the first subparagraph, the following amendments: i) then the expression "Confederation of production and commerce or its representative", insert the following phrase, preceded by a comma (,): "a representative of the territorial and functional community organizations formed in accordance with law No. 19.418, designated in the form established the regulations".

(ii) replace the term "three", "four", both times that it appears in the text.

(b) insert in the fifth paragraph, at the number 3-, between the comma that follows the expression "title" and the conjunction "and", the following sentence: "qualify social interest, considering the specific social activities which the beneficiary intends to perform within a specified time period".

((10) amended article 5 in the following sense: to) replace, in its first paragraph, the term "Council" by "Council".

(b) in the second paragraph, the expression "the immediately preceding two years" shall be replaced by "preceding year" and added following the separate dot (.), which happens to be followed, the following sentence: "for donations that finance projects or programmes aimed at the prevention or rehabilitation of addictions of alcohol or drugs, such projects or programs should, moreover, be certified by the National Council for the Control of narcotic drugs , the technical criteria established in the regulation referred to in article 6. "."

(c) replace in its third paragraph, the sentence "the implementation of these projects and programmes may not exceed a period of three years.", by the following sentence: "the implementation of these projects and programmes may not be considered a term of less than six months or overcome a period of three years.".
(d) replace your fourth, by paragraphs following paragraph: "the results of the evaluation of institutions and their projects or programmes, the allocation of the resources of the Fund, the institutions eligible to receive contributions of donations, together with the list of projects and programmes eligible, as well as the identity of the donor, the donated amount and each donation donating entity It will be public in nature and must be posted on the website of the agency responsible for carrying the respective registry, in a clear and orderly, so that it can be reviewed by all users of the system without the need to obtain key or have to pay for the collection of these data.

The Ministry of planning, founded resolution, you can unregister to those institutions that have engaged in the following conduct: to) have not fulfilled the obligations imposed by the donation received.

(b) have intended the donation money for purposes not included in the project or respective program or to one other than the one to which the donation was made.

(c) having engaged in any conduct criminalized in articles 11 and 13 of this law and article 97, N ° 24., of the tax code.

(d) have been sanctioned by the competent court, by arbitrary denial of care to beneficiaries the project or respective program, or other programs or social benefits that are managed by the beneficiary.

Institutions whose removal from the registry has been declared for the first time, may not again joining this or submit new projects or programs to funding from donations covered by this law or financing of the resources of the Fund, within the period of three years from the date of the resolution which applied such punishment. In case of declared again the removal from the registry of that entity, will apply the same punishment, but for a period of six years.

The application of the sanction of removal from the registry is subject to the following procedure: a) the Ministry of planning will notify the entity registered in the registry, by registered letter sent to the address registered, has the facts or charges that merit the sanctioning procedure, indicating the norm violated and the penalty which the law assigns to that fact.

(b) the notified shall have a period of five working days to make their disclaimers.

(c) once evacuated disclaimers, or after the deadline to do so, the Ministry will examine the merit of the background and, if necessary, order accountability tests that apply. The probationary term will be five working days, and the test will be appreciated according to the rules of healthy criticism.

(d) once the last relevant preliminary diligence, the authority shall be given within thirty calendar days a founded resolution which put an end to the process, solving the issues raised, in answer to each of the claims and defenses of the donating entity, and containing the Declaration of the imposed measure, or acquittal.

(e) once the period of six months counted from the formulation of charges, unless it has given final judgment in the respective procedure, the alleged infringer may require you organ instructor a decision on the issue, and the Ministry issuing a decision that put an end to the procedure within a period of ten working days, under penalty of which the entity is acquitted of charges that has been asked.

(f) in against the resolution mandating the removal from the registry, which must be notified to the representative of the sanctioned entity, will come the resources provided for in law N ° 19.880. "."

((11) amended article 10, in the following sense: to) replace the subparagraph first with the following:
"The whole of the donations made by the taxpayers of the tax of the first category of the law on income tax contained in article 1 of the Decree Law No. 824 of 1974, is for the purposes that it designates the article 2 of this Act or to those laid down in article 69 of law No. 18.681;" Article 8 of the law No. 18.985; Article 3 of law No. 19.247; Act No. 19.712; Article 46 of Decree Law No. 3.063, 1979; Decree Law No. 45, of 1973; Article 46 of law No. 18.899, and in no. 7 of article 31 of the law on income tax, as well as to those who are established in other legal regulations issued to grant tax benefits for donations will have as absolute global limit equivalent to 5% of the taxable income of liquid. This limit applies whether the tax benefit consists in a claim against the first category tax, or in the possibility of deducting as expenditure the donation. However, this limit does not will include that referred to in article 8. For the determination of this limit will be deducted from the taxable income of liquid donations to entities referred to in article 2. "."

(b) Intercalanse the following second and third subparagraphs passing the current subsection second to be fourth: "However, taxpayers subject to the first category tax of the Act designated in article 1 income tax, will be able to donate irrevocable long-term institutions laid down in article 2 or to the Fund established in article 3 , up to the equivalent of 1.6 per thousand of its own capital tax, with a maximum of 14,000 monthly tax units a year, irrespective of the taxable income of the respective exercise or when they have losses. In such a case, if in any of the exercises corresponding to the duration of the donation, the taxpayer registers a liquid taxable income such that 5% of it is less than the amount of the quotas of the donation that have expired and have been paid in the year, the taxpayer not entitled to credit indicated in item 1 ° by the indicated fees , but can deduct them completely as an accepted expense. The donations referred to in this subsection are those in which donation irrevocably occurs through a public deed, not subject to condition, establishing future payments at fixed, and annual fees expressed in u.f. and for periods of not less than four commercial exercises or mode.

In the case of taxpayers in tax complementary Global that determine their income in accordance with the provisions of article 50 of the law on tax on income, and those taxpayers subject to the tax referred to in number 1 of article 43 of the same legal text, the absolute global limit that sets the paragraph first of this article for the donations carried out in accordance with the tax laws It will be the equivalent to 20% of your taxable income, or will be 320 monthly tax units, if this amount is less than this percentage. In any case, donations exceeding this limit shall be equally released from the formality of overtone. "."

(12) replace article 11 with the following: "article 11.-the institutions receiving grants under this law or others that grant a tax benefit to the donor, may not be any provision in favour of this, directly or indirectly, exclusively, in special conditions or requiring fewer requirements than that require in general." They may not be such benefits on behalf of employees of the donor, its directors, or the spouse or the blood relatives, to the second degree, all of these, either directly or through related entities in the terms laid down in article 100 of the law N ° 18,045. This prohibition shall remain in force during the preceding six months and 24 months after the date in which the donation is made. The following features are found in this situation, among others,: provide scholarships, training courses, or others; transfer assets or provide services funded by the grant; deliver the marketing or distribution of such goods or services, in both cases when such goods or services, or the assigned operation, part of the economic activity of the donor; carry out advertising, beyond reasonable recognition, if this means benefits of a consideration under paid contracts and make any mention in such advertising, except the name and logo of the donor, of the products and services that it sells or provides, or deliver goods or services financed with donations, if it means benefits of a consideration under paid contracts.

However, the provisions of this article shall not apply when the performance carried out by the grantee or third parties relating to or hired by, on behalf of the donor, have a value that does not exceed 10% of the amount donated, with a maximum of 15 monthly tax units in the year, considering the current values in square of the respective goods or services to this effect.

Failure to comply with the provisions of this article will lose the benefit to the donor and force you to restore that part of the tax which has failed to pay fees and fines that apply according to the tax code. To this effect, it shall be deemed that tax is in arrears since the end of the period of payment for the tax year that should have been paid the respective without the tax benefit.

Likewise, donor and grantee which do not comply with the provisions of this article shall be punished by a fine of fifty percent to the three hundred per cent of the tax that has been left to pay the donor at the time of the donation. The application of this penalty is subject to the procedure laid down in article 165 of the tax code number 2.

The Ministry of planning, in conjunction with the Ministry of finance, shall report once a year to the National Congress on the operation of this Act. "."