The resolution 3295/2016 of 9th April 2019 from the Central Economic-Administrative Court (TEAC by its acronym in Spanish), proposes the possibility of accepting the deduction from the payment of the managers of a company. To achieve this, it is necessary that the positions are mentioned as remunerated in the bylaws of the company; however, sometimes meeting this requirement may not be enough.
The resolution clarifies that the deductibility in the remuneration of the managers the position must appear as paid in the statutes. This means that, a sensu contrario, to achieve the deductibility it is necessary not to stipulate the gratuity of the administrator’s position.
Frequently, during an inspection procedure, the ambiguous determination of the remuneration system of the managers is discussed, so that deductibility would not be allowed in this way. The TEAC resolution clarifies the necessary requirements of the reference to the remuneration in the bylaws, in order to achieve the deduction from the Corporation Tax.
One of the potential ways to obtain the deduction is to consider the remuneration as a fixed amount of annual expenditure. According to the resolution 3319/16 from TEAC, this must be allowed if the General Board approves it every fiscal year. Therefore, the remuneration of the managers would be deductible when considered as a fixed amount of annual expenditure and when the General Board reaches an agreement.
B Law & Tax
International Tax & Legal Advisors