Corporate patronage: tax reduction of 60% of donations up to 0.5% of turnover

The Patronage Act replaces the deduction of donations from taxable profit with an income or corporate tax reduction equal to 60% of payments to charities and organisations of general interest, up to 5 per thousand of turnover excluding VAT, with any excess carried forward over the following five financial years (Article 238 bis of the General Tax Code). Companies can also deduct the purchase price of musical instruments lent free of charge to artists, and works of art acquired under this scheme are excluded from the business tax base. The scheme applies to payments in financial years beginning on or after 1 January 2003.