Scope

Section First section of article 27.3 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage , includes the application of this type of deductions in the following terms:

• Entities may deduct from the total tax rate percent of the expenses that, in compliance with the plans and programs of activities established by the consortium or by the corresponding administrative body, they carry out in the propaganda and publicity of multi-year projection that directly serve the promotion of the respective event.

• The amount of this deduction cannot exceed 90 percent of the donations made to the consortium, publicly owned entities or entities referred to in Article 2 of Law 49/2002, responsible for carrying out programs and activities related to the event. If this deduction is applied, these donations will not be eligible for any of the tax benefits provided for in Law 49/2002.

• When the content of the advertising medium essentially refers to the dissemination of event , the basis for the deduction will be the total amount of the expense incurred. Otherwise, the basis for the deduction will be 25 percent of said expense.

• These deductions will computed with the deductions established in Chapter IV of Title VI of the with the limits and conditions established in Article 39 of said Law.