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Practical Manual of Companies 2022.


The First section of article 27.3 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, includes the application of this type of deductions in the following terms:

  • Entities may deduct from 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 multiannual projection that serve directly for the promotion of the respective event.

  • The amount of this deduction 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, responsible of carrying out programs and activities related to the event. If this deduction is applied, said donations will not be eligible for any of the tax benefits provided for in Law 49/2002.

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

  • These deductions will be computed jointly with the deductions established in Chapter IV of Title VI of the LIS with the same limits and conditions established in article 39 of said Law.