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An Economic Interest Grouping (AIE) has enquired whether music festival expenses allow for the application of the tax deduction under Article 36.3 of the Corporate Income Tax Act (LIS). The Directorate General for Taxes (DGT) has ruled that this is possible, provided that legal requirements are satisfied and direct costs are correctly identified.
This ruling clarifies the eligibility of AIEs to claim tax incentives for live performances, provided they maintain strict separation between direct costs and structural expenses.
The tax team reviews your specific situation.
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