What are the authorized grantees?
They are non-profit legal entities that have obtained an approval from the Tax Administration Service (SAT) to be able to issue deductible receipts from the income tax base.
What type of legal entities are likely to obtain the authorized grantee qualification?
  • Civil associations;
  • Private Assistance or Charity Institutions;
  • Escrows wether or not they have a legal (no se a que se refiere personalidad) the heritage/wealth is affected to pursue a non profit or assisted goal.
Advantages of legal entities with quality of authorized grantees.
  • For tax purposes, the corresponding tax regime is the one of a a legal entity for non-profit purposes. (Title III of the Income Tax Law);
  • You can issue deductible receipts for Income Tax for donations, whether in cash or in goods, from residents of the country or abroad;
  • In general, it is not a taxpayer of Income Tax;
  • The authorization as Grantee is published annually in Annex 14 of the Fiscal Miscellaneous -Resolution through the Official Gazette of the Federation, which constitutes and generates legal certainty to its potential donors, which in return, helps you to receive more donations.
  • With prior authorization from the Tax Administration Service, you can apply the deductible donations you receive to other additional activities contained in your Bylaws and
  • With prior authorization, it does not pay foreign trade taxes for the entry into the country of goods that are donated, as long as the donor is a resident abroad, among many others. 
What are the advantages of those who grant donations to authorized grantees?
  • Individuals can deduct non-onerous, or remunerative donations that they give to legal entities, as long as the total amount does not exceed 7% of the accumulated income that serves as the basis for calculating the Income Tax. What generates a beneficial relationship with the aim of supporting the cause that seems best for the corporation.
  • Similarly, legal entities can deduct non-onerous or remunerative donations up to an amount that does not exceed 7% of the tax profit obtained in the year prior.
  • In the case of donations in kind, they can deduct the corresponding amount in accordance with tax provisions.
  • They are established as individuals and companies with concrete actions in various causes in order to improve the social, cultural and economic conditions of Mexico. 
Qualify as a non-profit legal entity
Have the authorization to issue deductible receipts for Income Tax and comply with the obligations established in title III of the Income Tax Law, since otherwise that association or society, for example, must comply with the provisions of Title II (companies) and therefore would have to pay the corresponding Income Tax for the profit obtained at the end of the year.
Income tax exemption over the selling goods. Interests and prizes.
For the most part, non-profit legal entities will be taxpayers of Income Tax when they obtain income from the sale of assets, interests or prizes, in accordance with what the tax legislation establishes, but there are exceptions when they are Authorized Grantee and have the corporate purpose and adequate authorization by the Authority.
Income tax exemption when they dispose goods or provide services to non members.
Another advantage that can be obtained from being an Authorized Grantee, indicates that in the case that non-profit legal entities dispose of goods or provide services to persons other than their members or associates, they must determine the Income Tax that corresponds to the profit. for the income received from the activities mentioned in title II, at the rate of 30%, when said income exceeds 5% of the total income of the legal entity for a year.
Activities Subject to authorization to issue deductible receipts of income tax:
  • Assistance.
  • Social development.
  • Educational.
  • Scientific or technological research.
  • Cultural.
  • Ecological.
  • Preservation of endangered species.
  • Financial support to other Authorized Grantees.
  • Scholars.
  • School-company.
  • Public works and services to be carried out by the Federation, States or Municipalities.
  • Museums and Private Libraries.