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V3021-20 6 October 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por donativos

Donation of legal services does not entitle to tax relief for patronage under Corporate Tax

A foundation enquired whether donating a right to collect fees for legal services provided by a law firm would allow for tax deductions for donations. The Directorate General for Taxes (DGT) ruled that the provision of services does not constitute a donation of rights eligible for such a deduction.

The question raised

1.) Whether the proposed operation is liable to generate the right to the deduction for donations provided for in Article 17 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage.

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