Back to index
V1090-16 17 March 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · know-how

Payments to external consultants may be included to meet the 25% intangible creation requirement

A company has requested clarification on whether the requirement to have created at least 25% of an intangible's cost can be met solely through internal expenses or if payments to external consultants are also eligible. The Directorate General for Tax (DGT) has ruled that both types of expenditure count towards meeting this percentage.

The question raised

In relation to the requirement of Article 23.1.a) of Law 27/2014, of November 27, on Corporate Income Tax, whether for the calculation of the 25% of the cost borne by the transferor, payments made to external consultants hired for the development of the project must be taken into consideration in addition to the personnel and indirect expenses of entity B itself.

The DGT's ruling

To comply with the requirement of Article 23.1.a) of the LIS, the intangible is considered to have been created by the entity both through expenses incurred with its own human and material resources and through the portion subcontracted to third parties. This is the case provided that the transferring entity assumes the risk and the benefit of the result of the production of the intangible.

Book your free first meeting