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V3285-14 9 December 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · convenio de colaboración empresarial

Agreements to carry out a company's CSR do not qualify as business collaboration agreements

A company asks whether services provided to a foundation to execute its corporate social responsibility (CSR) can be considered deductible business collaboration agreements. The DGT responds that such agreements do not qualify if the support aims at carrying out the company's own activities rather than the foundation's statutory objectives.

The question raised

Whether the support and services that A provides to the Foundation based on the collaboration agreement signed by both entities constitute economic aid as regulated in Article 25 of Law 49/2002 and, therefore, whether the expenses incurred are considered deductible for A in Corporate Income Tax, and whether it is correct from a tax perspective that the collaboration activity carried out through the aforementioned provision of services is performed exclusively in exchange for the Foundation's commitment to disseminate A's participation in its activities.

The DGT's ruling

For a business collaboration agreement to exist pursuant to Article 25 of Law 49/2002, the aid must be allocated to the performance of activities that fulfill the specific object or purpose of the non-profit entity. In this case, the services provided by the company appear to be intended for the coordination of the company's own social responsibility. Therefore, the requirements to be considered a business collaboration agreement are not met.

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