How can your company pay less taxes?

Published : 2019-05-01 13:05:10
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How can your company pay less taxes?

Competing in any sport implies costs, the various expenses involved in the development of sports activities, can condition the athlete's future according to their economic possibilities. For any athlete or club is very important the figure of the sponsor, essential for the future of these and that can make the difference between who can thrive in the world of sports and who does not, despite having great sports potential.

At this point, we have to say that both companies and individuals can pay less taxes through certain patronage or sports sponsorship activities.

First, it is necessary to expose the differences between concepts:

Patronage: it is the contribution of certain resources towards a third party so that they can carry out their activity in one way or another. In this case, the beneficiary must be considered as an activity of general interest, a Spanish federation, a regional federation linked to a national one, public universities or colleges attached to them, as well as some regional entities. In this sense, no direct economic return is expected with respect to exercising as patrons, but intangible, linking your brand to the activity supported. It appears in the Law of Patronage.

Sponsorship: is that monetary or goods contribution made by a company in order to unite its brand to the values ​​and image that the sport transmits. This type of sponsorship includes athletes, clubs and sporting events.

Once the difference between the two activities has been clarified, let's explain what are the benefits that each modality brings

Tax treatment of patronage

With regard to Corporate Tax, it is there where certain commitments and incentives begin to arise to try to generate an extra interest that already awakens in itself the link between donor and beneficiary.

The most common fiscal figure for Patronage is the Business Collaboration Agreement, included in Chapter III of the Patronage Law 49/2002, more concretely, in its article 25, 'Business collaboration agreements in activities of general interest' . In it we find as a tax incentive the discount on Company Tax -which is usually 25 %-, of the amount allocated to Patronage, the tax base must not exceed 10%.

Tax treatment of Sports Sponsorship

Sports Sponsorship, it is a purely advertising and commercial action. Hence, Law 34/1988, of November 1, General of Advertising, must be applied. It establishes the contractual terms of such action to be developed and Law 10/1990, of October 15, on Sports, which includes tax incentives for the sponsorship of sports activities. The amount contributed as advertising sponsorship is considered deductible, as if it were any other advertising expense.

This investment must be accredited as a commercial action, so the expense must be documentary justified.

Once all the aspects of patronage and sports sponsorship have been clarified, it is only necessary to add that in this respect our Multidisciplinary Sports Tools are the perfect link to carry out any of the activities indicated in this article. Being made with materials of maximum professional performance with quality parameters, they are not only the perfect tool to generate sports tasks adapted to all ages and levels of skill, but also an ideal support for those interested in carrying out some kind of collaboration with the sports world, can use them as advertising support, which will be exposed to potential customers of the advertising company in each of the training sponsored and taking into account that they are manufactured free of programmed obsolescence, this advertising will last in time, what will make your advertising investment very profitable and will contribute to improve the sports performance of your sponsored.

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