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V1442-15 8 May 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · gasto deducible

Remuneration of a partner for work is deductible under certain conditions

The DGT confirms that a partner's remuneration for work carried out in the company is deductible if the accounting registration, accrual, correlation, and justification requirements are met, and if it is valued at market value due to the relationship.

The question raised

1) Whether the remuneration received by the partner can be considered a deductible expense for Corporate Income Tax purposes.

The DGT's ruling

Expenses for remuneration of partners for functions other than those of an administrator are deductible for Corporate Income Tax purposes if they meet the conditions of accounting registration, accrual basis, correlation between income and expenses, and documentary justification. As a related-party relationship exists, the valuation of these transactions must be carried out at their normal market value.

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