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V2319-14 8 September 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · base imponible

Director's remuneration is deductible if the articles of association establish it as paid

The taxpayer inquired whether the salary of an individual with no connection to the company is deductible when hired for a new activity. The Directorate General for Taxes (DGT) clarified that, if the individual is a director, deductibility depends on the articles of association stipulating their remuneration and compliance with commercial regulations.

The question raised

"Whether the amount of salaries and wages of a person with no relationship to the company, who is employed on a full-time, part-time, temporary, or permanent basis, would be deductible from the income generated by the new activity."

The DGT's ruling

Every accounting expense is tax-deductible if it complies with accounting registration, accrual, correlation with income, and documentary justification, provided it is not a specifically non-deductible expense. In the case of administrators, if the bylaws establish that the position is unpaid, the remuneration is a non-deductible gratuity. If the bylaws provide for remuneration, the expense shall be deductible provided it is fixed in accordance with the Capital Companies Act.

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