Marc Ciutat, partner of the tax department of addwill, has published an article in number 338 dated December 2021/January 2022 of the ICAB’s Món Jurídic magazine.

The article deals in depth with the problem of the deductibility in the Corporation Tax of the remuneration received by the administrators, which is subject to a series of interpretations and complex formalities that can cause the Tax Administration to consider the remuneration paid by a company to its directors as non-deductible.

In this sense, the article reviews in detail the legislative and jurisprudential evolution that this issue has undergone, highlighting that, although as of January 1, 2015, the new Corporate Tax Law (LIS 27/2014) includes a specific mention in relation to the remuneration of the administrators, establishing that “remuneration to administrators for the performance of senior management functions, or other functions derived from a labor contract with the entity” will not be considered as donations or liberalities. Legislative change has not served to put an end to the potential tax contingencies that may arise in case of review by the Tax Administration.

According to Marc Ciutat, this is an issue that generates situations that can lead to relevant contingencies for companies and that, with the Judgment of TS 150/2021 and those that may come in the future, a more reasonable interpretation of this can be given way by the Tax Administration.

You can access the full content of the article by clicking here.

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