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V2414-23 ·7 September 2023 ·consulta-vinculante Medium impact
Tax

Sponsorship expenses for a sports entity are deductible for Income Tax purposes if they constitute consideration for advertising

A livestock farm owner asks whether the amount paid to sponsor a sports entity can be deducted from their Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) responds that it is deductible provided it is a genuine advertising expense and meets all deductibility requirements.

In 6 key points

How it affects those involved

This ruling clarifies that sponsorship payments can be treated as deductible advertising expenses for taxpayers under the direct estimation regime, provided there is a clear link between the payment and the promotional activity.

Lifecycle

2023-09-07PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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