8.4.4 Deductions related to support programs for events of exceptional public interest (Article 27.3 First Law 49/2002)

Common rules for deductions (from article 27.3. First of Law 49/2002) relating to events of exceptional public interest:

The application of deductions related to events declared of exceptional public interest by legal regulations approved as of January 1, 2007 will be carried out in accordance with the provisions of section 3. First of article 27 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, in the wording given by the second Final Provision. 20 of Law 35/2006, of November 28.

These deductions will be computed jointly with the deductions established in Chapter IV of Title VII of the Corporate Tax Law with the same limits and conditions established in article 39 of said Law.

Corporation Tax taxpayers may deduct from the full tax rate 15 percent of the expenses that, in compliance with the plans and programs of activities established by the consortium or by the corresponding administrative body, they carry out in the propaganda and advertising of multi-year projection that directly serves the promotion of the respective event.

The amount of this deduction cannot exceed 90 percent of the donations made to the consortium, publicly owned entities or entities referred to in article 2 of Law 49/2002, responsible for carrying out programs and activities related to the event.If this deduction is applied, said donations will not be eligible for any of the tax benefits provided for in Law 49/2002.

When the content of the advertising medium refers essentially to the dissemination of the event, the basis of the deduction will be the total amount of the expense incurred. Otherwise, the base of the deduction will be 25% of said expense.

The certification of the adequacy of the expenses incurred to the objectives and plans of the program will be carried out in accordance with the provisions of Law 49/2002.