Five per thousand—how does it work and how is it calculated?
Learn everything you need to know about how you can use your income tax to support non-profits.
4 min read
If you watch Italian TV you’re probably familiar with the term “5 per mille”, or “five per thousand”, from charity commercials. But how many of us really know what that phrase means? And five per thousand of what, you ask? Let's take a look at how this law works and how its percentage—which is allocated to support the non-profit sector and scientific research—is calculated.Established as an experiment in 2006, the five per thousand law allows taxpayers to contribute a percentage of their income tax—five per thousand or 0.5%—to an organization engaged in social causes. It's a voluntary contribution that, as part of your income tax return, allows taxpayers to invest in the non-profit association or social sector of your choice.A taxpayer’s five per thousand can be contributed to any one of the associations or organizations approved by the Italian Revenue Agency in the following sectors:As we mentioned above, the five per thousand is calculated based on personal income tax and the value contributed is up to 0.5% of personal income. If you would like to calculate the potential value of your five per thousand, you simply need to divide your income tax amount by 1000 and then multiply it by 5.On your tax return or CU form (Certificazione Unica), specify where you’d like to contribute your five per thousand. In all tax modules (730, Unico, and CU forms), you’ll find a section dedicated to the five per thousand under 'Scelta per la destinazione del cinque per mille dell'IRPEF' (Allocation choice—five per thousand of your personal income).This section is divided into different categories representing the various organizations and associations where you can contribute your tax share.On your income tax return, there are two different ways to specify who will receive your five per thousand—you may choose one of the following options:The two per thousand, the five per thousand, and the eight per thousand are all ways to contribute part of your income tax return. As explained above, the five per thousand allows you to share 0.5% of your personal income tax with the non-profit sector.The eight per thousand, on the other hand, is a percentage of tax income that you can contribute to the Italian state, the Catholic Church, or one of twelve other religious denominations recognized by the government.Finally, the two per thousand is a percentage of income tax that you can contribute to a political party.N26 is a 100% digital bank that lets you take care of your finances directly from your smartphone, wherever and whenever you want. We believe banking should be simple, easy, and intuitive—that’s why we’re here to give you the tools you need to feel confident and in control of your money.Don't have an N26 account yet? Find the bank account that's right for you and get ready for a quick, easy, and transparent banking experience designed to fit into your life.
What is the five per thousand?
How to choose an organization for your five per thousand?
- Volunteering
- Scientific and university research
- Health research
- Social policies pursued by municipalities
- Amateur sports activities
- Protection, promotion, and enhancement of cultural and landscape heritage
- Support for the management of protected areas
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Try the budgeting calculatorHow do you calculate the five per thousand?
How do you choose five per thousand on your tax return?
- Directly insert the tax code of your chosen organization in the relevant category box.
- Add your signature to the relevant category box and your tax share will be divided among the organizations included in that category.
Two per thousand, five per thousand, eight per thousand—what's the difference?
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