Garrigues, Taxand Spain, addresses several key tax topics related to the world of sport in their latest newsletter. Included is an article on the debate over determining the tax credit base for advertising expenses related to combined mediums.
The supreme court judgment of 13 July 2017 (appeal 1351/2016) has put an end, for the time being, to the debate that has arisen over determining the tax credit base for multiyear advertising and publicity expenses incurred directly to promote events of exceptional public interest.
As you may recall, article 27 of Law 49/2002, of 23 December, on the tax regime for not-for-profit entities and for tax incentives to patronage, allows to be determined by law a number of specific tax benefits applicable to steps taken to ensure adequate arrangements for events of exceptional public interest.
Those tax benefits include a 15% tax credit for any multiyear advertising and publicity expenses which, under the plans and programs established by the organisers or public authority body, are incurred directly to promote the event.
Despite any uncertainty over the establishment of the Supreme Court’s view, the truth is that later decisions by the judicial and administrative authorities are reproducing it, and in some cases, adjusting their own precedents to the Supreme Court’s finding.