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V1444-15 8 May 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · gasto deducible

Remuneration of a partner for non-administrative functions is deductible

A company asked whether the salary paid to its sole partner for administrative duties is deductible. The DGT confirms that it is deductible if the accounting registration, accrual, income correlation, and justification requirements are met, and if the value is assessed at market value where a relationship exists.

The question raised

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

The DGT's ruling

Expenses for remuneration of partners for functions other than those of director are deductible if they comply with the conditions of accounting registration, accrual basis, correlation of income and expenses, and documentary justification. As a related-party relationship exists, the valuation of these operations must be carried out at their normal market value pursuant to Article 18 of the LIS.

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