Social Promotion Associations (APS - Associazioni di Promozione Sociale) are Third Sector Entities (ETS) governed by the Italian Third Sector Code (Legislative Decree 117/2017).
In short: given the nature and social value of APS activities, the Italian State provides numerous and significant tax facilitations, provided that strict non-profit (non-commercial) requirements are met and strict government supervision over the associationās activities is accepted.
Here is a summary of their characteristics, benefits, and supervision methods:
Characteristics
- Non-profit Purposes: They pursue civic, solidarity, and social utility goals, intervening in critical areas of the social fabric.
- Democracy: The internal organization is inspired by criteria of democracy, equal rights, and equal opportunities for all members, favoring social participation without discrimination.
- General Interest Activities: They exclusively or primarily carry out activities of general interest (such as education, cultural activities, protection of human rights, promotion of legality, and social assistance), mainly relying on the volunteer work of their members.
- Structure: They can have employees only when necessary for the performance of their institutional activities, within regulatory limits.
- APS Qualification: An entity can use the acronym APS (and ETS) only after recognition and registration in the RUNTS (Single National Register of the Third Sector).
Benefits
- Tax Advantages: Registration allows access to various tax benefits.
- 5x1000 Access: Each taxpayer can allocate 0.5% of their income tax to the APS.
- Public Tenders: Access to public tenders and agreements with public administrations.
- Tax Exemption: Membership fees and member contributions are not subject to taxation.
- Institutional Income: Payments from members for institutional activities are considered non-commercial and thus not taxed.
- Exemptions: Exemptions from indirect taxes, local taxes (IMU/TARI if decided by Municipalities), and stamp duty.
- Donor Incentives: Individuals can benefit from a 30% tax deduction or income deduction for donations.
Supervision and Obligations
- National Register (RUNTS): Supervision is entrusted to the RUNTS Offices, which verify compliance with legal conditions.
- Compliance: The entity is required to keep data updated in the RUNTS and fulfill periodic reporting and transparency obligations.
- Consequences: Failure to comply can lead to cancellation from the Register after a formal warning.