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Practical Income Manual 2021.

3.1. General regulation and limits

Regulations: Art. 27 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage ( BOE of 24).

Delimitation of an event of exceptional interest

Article 27.1 of Law 49/2002 defines support programs for events of exceptional public interest as " the set of specific applicable tax incentives to the actions carried out to ensure the proper development of the events that, where appropriate, are determined by Law."

Percentage and deduction base

For its part, article 27.3 of Law 49/2002 establishes as a tax benefit for Personal Income Tax taxpayers who carry out economic activities under the direct estimation regime the possibility of deducting of the full amount of the tax, 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 publicity of multi-year projection that serve directly for the promotion of the respective event.

Note: the Resolution of January 25, 2018, of the General Directorate of Taxes, which approves the Manual for the application of tax benefits corresponding to multi-year propaganda and advertising expenses, which serve to promote exceptional events public interest ( BOE of February 2) contains the applicable rules.

The basis of the deduction may be the total amount of the expense incurred , provided that the content of the advertising medium refers essentially to the disclosure of the event. Otherwise , the deduction base will be 25 percent of said expense .


  1. Joint limit on deductions to encourage the performance of certain activities

    This deduction will be computed jointly with the deductions regulated in articles 35, 36 and 38 of the LIS , for the purposes of the limits established by the article 39.1 of the LIS

    These limits for the set of deductions provided for in article 39.1 of the LIS are applied in the Personal Income Tax on the fee that results from reducing the sum of the full state and regional contributions (boxes [0545] and [0546] of the declaration), in the total amount of deductions for investment in habitual residence (in the case of taxpayers to whom the transitional regime of this deduction is applicable), for investment in new companies or recent creation, provided for in article 68.1 of the Personal Income Tax Law , and for actions for the protection and dissemination of Spanish Historical Heritage and World Heritage (boxes [0545] and [0546]; [0549]; [0550] and [0551 ]).

    In relation to these limits, article 39.1 of the LIS establishes that the amount of deductions (excluding the deduction for expenses executing a foreign production of feature films or audiovisual works to which referred to in article 36.2 of the LIS which is not subject to these limits), applied in the tax period, may not jointly exceed 25 percent of the quota before defined .

    However, said limit is raised to 50 percent when the amount of the deductions provided for in articles 35 and 36 of the LIS (the latter since January 1, 2021), which corresponds to expenses and investments made in the tax period itself, exceeds 10 percent of the total tax amount , less in deductions for protection and dissemination of Spanish Historical Heritage and World Heritage and by investments in habitual residence and in new or recently created companies.

    When there are pending balances of deductions from previous years, the appropriate limit (25 percent or 50 percent) will be applied jointly to the deductions for fiscal year 2021 and the pending balances from previous years.

  2. Additional limit

    Regarding the limits of the deduction, in addition to the general one referred to in the previous section, the amount of this deduction is subject to another additional one, which is that 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, of December 23, in charge of carrying out programs and activities related to the event throughout of the entire duration of the program. If the deduction subject to examination in this section is applied for expenses linked to events of exceptional public interest such donations will not be eligible for any of the tax incentives provided for in Law 49 /2002 .