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Practical Manual of Companies 2022.

Expenditure on donations and gifts

article 15 e) of the LIS establishes the non-tax deductibility of certain donations and liberalities.

Within this letter e), expenses for services to clients or suppliers are not included, nor those that, in accordance with uses and customs, 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 services to clients or suppliers will be deductible with a limit of 1 percent of the net amount of the turnover for the tax period.

Nor will it be understood to be included in this letter e), remuneration to administrators 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 donations and non-tax deductible liberalities are recorded, a positive adjustment must be made to the accounting result in box [00339] «Expenses for donations and liberalities (art. 15 e) LIS)» on page 12 of model 200.