B Law & Tax
16 May 2023

Tax advisor: Tax benefit extended to companies for the promotion of events

The Supreme Court (SC) has confirmed its new position on taxation and has established that private companies can deduct up to 15% in corporate income tax for advertising or promotional expenses related to events of general interest, such as a sporting event in a city.

The SC has modified its criterion on taxation and has determined that the tax deduction in the Corporate Income Tax for advertising or promotion made by private companies on events of general interest must be applied on the total cost of the advertising campaign. The purpose of the rule establishing this tax deduction is to encourage companies to collaborate with the Administration in the dissemination of events of general interest in exchange for the tax deduction, which acts as consideration for the advertising service provided for the general interest. The ruling states that the tax deduction cannot be applied on the cost of the logo insertion, but on the cost of the integral advertising performance. The new position has the unanimous support of the Chamber.

B Law & Tax International Tax & Legal Advisors.


“En B LAW&TAX somos especialistas en asesoramiento fiscal internacional tanto a empresas como para particulares. Si desea ampliar la presente información, estaremos encantados de poder atenderle en el 917817194 o en [email protected]