Spain puts “retroactively” a line through tax deductions that are linked to sponsoring events that are qualified as “special interest”.
This includes the most important events that Spain knows, including many dozens of others, Madrid Horse Week, Barcelona World Race, 200 years of del Teatro Real and La Liga World Challenge.
Earlier guarantees with retroactive effect withdrawn
Tax rates, tax regulations and tax deductions can change. That is logical and we can not say anything about that.
Spain, however, regularly changes the rules not only from the date of the decision, but with retroactive effect. As if ‘a goal assigned in minute 18, in minute 89, just before the match is over, is still rejected’. Obviously in favor of the home playing party, the Spanish tax authorities.
In this case, there is an absurd situation. The Spanish tax authorities themselves have issued certificates for each event in which the tax deductibility for sponsors was guaranteed.
And despite the fact that sponsors have these certificates, the Spanish tax authorities can retroactively cancel this tax deduction for them with retroactive effect (four years!).
It is known that Spanish companies supported certain events that were qualified by the State of Spain as ‘exceptional interest’ with amounts up to € 2 million per year. These can now be viewed by the Spanish tax authorities, which issued certificates for each event itself to guarantee deductibility, with retrospective retrospective payments that amount to millions of euros.
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