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A foundation has requested clarification on whether it can pay the directors of its subsidiaries directly for professional services. The Directorate General for Tax Affairs (DGT) has ruled that, to maintain the special tax regime, such remuneration must be reimbursed to the foundation they represent.
Question raised: Whether the Foundation may directly remunerate the administrators or directors of subsidiary companies for professional services rendered, provided that the amount does not exceed that regulated by number 4 of article 217 of the Consolidated Text approved by Royal Legislative Decree 1/2010, of July 2, of the Capital Companies Law.
The fees for patrons or members of the governing body must be gratuitous, except for the reimbursement of justified expenses. This rule applies to administrators representing the entity in commercial companies in which it participates. If administrators receive remuneration by virtue of their status as such, these must be reimbursed to the entity they represent to comply with the requirements of Law 49/2002.
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