9. Tax incentives for patronage: collaboration agreements in activities of general interest

Regulations: Art. 25 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage

A business collaboration agreement in activities of general interest is one by which the entities benefiting from patronage, in exchange for financial assistance for carrying out the activities they carry out in compliance with the specific object or purpose of the entity, undertake in writing to disseminate, by any means, the participation of the collaborator in said activities.

The dissemination of the collaborator's participation within the framework of the aforementioned agreements does not constitute a provision of services.

The amounts paid or expenses incurred are considered deductible expenses to determine the net income of the economic activity of taxpayers who use the direct estimation method in any of its two modalities, normal or simplified.

The tax regime applicable to the amounts paid in compliance with the aforementioned collaboration agreements will be incompatible with the other tax incentives provided for in Law 49/2002, of December 23, on the tax regime for non-profit entities and tax incentives for patronage.

The tax regime established in Law 49/2002 for donations made to entities benefiting from patronage is discussed in Chapter 16.