4.2.30 Code 00339 expenses for donations and gratuities (Article 15 e) LIS)

Article 15 e) of the LIS establishes that donations and gifts will not be considered tax-deductible expenses.

Within this letter e), expenses for customer or supplier services will not be included, nor those that, in accordance with customs and practices, are made with respect to the company's personnel, nor those made to promote, directly or indirectly, the sale of goods and provision of services, nor those that are correlated with income. However, expenses for customer or supplier services will be deductible up to a limit of 1 percent of the net turnover of the tax period.

Nor will remuneration to administrators for the performance of senior management functions, or other functions derived from an employment contract with the entity, be understood to be included in this letter e).

For these purposes, in the tax period in which these expenses for non-tax-deductible donations and gratuities are recorded, an adjustment must be made to the accounting result in key [00339] for increases, completing, where appropriate, the corresponding breakdown boxes.