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V2130-19 12 August 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · gastos deducibles

Tennis tournament prizes may be deductible expenses if they follow established customs

A company organising tennis tournaments has enquired whether the prizes awarded to players are deductible expenses. The Spanish Tax Agency (DGT) has ruled that they may be, provided they are an essential part of the tournament and align with established customs, subject to meeting registration and substantiation requirements.

The question raised

1. The prizes awarded are considered deductible expenses for non-professional players.

The DGT's ruling

Prizes awarded in tournaments are not considered donations or gratuities if they correspond to the customs and practices of the type of competition and are an essential part thereof. For their deductibility, they must comply with the conditions of accounting registration, accrual-based recognition, and documentary justification, without contravening the rest of Article 15 of the LIS.

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