Obligations and best practices for non-profit organizations

Article 3 of Law 50 of 2003, as amended by Law 49 of 2009, requires non-profit organizations to maintain a detailed record of all funds received, generated, or transferred. Additionally, within 90 days after the close of each fiscal year, entities must submit a consolidated report of donations to the Ministry of Economy and Finance through the e-Tax 2.0 system (Form 61). The law also mandates the reporting of payments made to third parties (Forms F-27/F-20).

Resolution 201-4523 of June 5, 2025, reiterates the penalties for non-compliance, which include fines ranging from B/. 100 to B/. 500 per infraction, temporary suspension of the deductibility of donations for contributors, and potential revocation of the entity’s recognition as an authorized recipient. In addition, the public disclosure of non-compliant organizations affects their reputation and limits access to national and international funding.

How to maintain compliance and avoid penalties

• Appoint a designated tax representative and keep organizational data updated in e-Tax 2.0.

• Record each donation with supporting documentation (receipt, agreement, or bank evidence) and retain both digital and physical copies for five years.

• Conduct monthly bank reconciliations that link income and expenses to specific projects or programs.

• Compile quarterly data required for Forms 61 and F-27/F-20 to minimize year-end reporting risks.

• File reports within the legal deadline and confirm proper submission through the platform.

• Regularly review the Official Gazette and DGI bulletins for regulatory updates or new resolutions.

Implementing these measures promotes traceability, transparency, and trust among donors and authorities, helping to avoid sanctions and preserve the tax deductibility of contributions.

At C&M Accounting & Tax Solutions, we offer guidance to ensure your non-profit remains in full compliance. Feel free to contact us at taxsolutions@cedeymen.com.