8.4.4 Deductions relating to support programmes 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 relating to events declared to be of exceptional public interest by legal regulations approved as of 1 January 2007 shall 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, as amended 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 Income Tax Law with the same limits and conditions established in article 39 of said Law.

Corporate Tax payers may deduct from the total tax amount 15% of the expenses incurred in multi-year advertising and publicity that directly serve to promote the respective event in compliance with the plans and activity programs established by the consortium or the corresponding administrative body.

The amount of this deduction cannot exceed 90% 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 programmes and activities related to the event. If this deduction is applied, these donations will not be eligible for any of the tax benefits provided for in Law 49/2002.

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

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.