Expenditure on donations and gifts

Article 15 e) of the LIS establishes the non-tax deductibility of certain donations and gifts.

Within this letter e), the expenses for attention to clients or suppliers are not 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.

This letter e) will also not include the remuneration paid to directors for the performance of senior management functions, or other functions derived from an employment contract with the entity.

Filling in form 200

For these purposes, in the tax period in which these expenses for non-tax-deductible donations and gratuities are recorded, a positive adjustment must be made to the accounting result in box [00339] "Expenses for donations and gratuities (art. 15 e) LIS)" on page 12 of form 200.