{"id":13590,"date":"2024-07-19T08:30:43","date_gmt":"2024-07-19T08:30:43","guid":{"rendered":"https:\/\/vila.es\/?p=13590"},"modified":"2024-10-21T08:51:15","modified_gmt":"2024-10-21T08:51:15","slug":"deductibility-of-the-remuneration-of-company-directors-iii","status":"publish","type":"post","link":"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/","title":{"rendered":"DEDUCTIBILITY OF THE REMUNERATION OF COMPANY DIRECTORS III"},"content":{"rendered":"<p style=\"text-align: right;\"><strong><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/vila.es\/societario\/deducibilidad-de-las-remuneraciones-de-los-administradores-sociales-iii\/\">ES<\/a><\/span>|EN|<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/vila.es\/ja\/%e4%bc%9a%e7%a4%be%e6%b3%95\/%e5%8f%96%e7%b7%a0%e5%bd%b9%e5%a0%b1%e9%85%ac%e3%81%ae%e6%90%8d%e9%87%91%e7%ae%97%e5%85%a5%e3%81%ab%e3%81%a4%e3%81%84%e3%81%a6iii\/\">\u65e5\u672c\u8a9e<\/a><\/span>|<span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/vila.es\/de\/gesellschaftsrecht\/abzugsfaehigkeit-der-verguetung-der-geschaeftsfuehrern-einer-gesellschaft-iii\/\">DE<\/a><\/span><\/strong><\/p>\n<p style=\"font-weight: 400; text-align: justify;\">In our articles of the <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors\/\">22<sup>nd<\/sup> of September 2023<\/a><\/span> and the <a href=\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-ii\/\"><span style=\"color: #3366ff;\">8<sup>th<\/sup> of March 2024<\/span><\/a>, we analysed the Supreme Court\u2019s change of approach in relation to the issue of the deductibility of remuneration received by company directors, and the application of the so-called \u201clink theory\u201d (<em>teor\u00eda del v\u00ednculo<\/em>). The Supreme Court, contrary to what the Tax Administration has been upholding, ruled that remuneration received by top executives who, at the same time, form part of the management body of the company, does not constitute a non-deductible \u201cliberality\u201d for the purposes of article 14.1e) of the TRLIS (consolidated text of the Corporate Tax Law), either due to the fact that the relationship which binds those who receive the remuneration to the company is commercial in nature, or because the commercial requirements relating to remuneration (the need for a provision in the company by-laws specifying the paid nature of the position of director, and the approval of the remuneration in the general meeting of shareholders) have not been met, as long as said remuneration is accounted for, accredited, and made in consideration of services which have been effectively rendered. This is the judgment upheld by the High Court in its sentences of the 27<sup>th<\/sup> of June 2023, 2<sup>nd<\/sup> of November 2023, 18<sup>th<\/sup> of January 2024, and 13<sup>th<\/sup> of March 2024, amongst others, and in the most recent sentence of the 13<sup>th<\/sup> of June 2024.<\/p>\n<p style=\"font-weight: 400; text-align: justify;\">This approach has also been welcomed by the Central Economic Administrative Tribunal (TEAC) in its resolutions of the 22<sup>nd<\/sup> of February 2024 and the 27<sup>th<\/sup> of May 2024. In the resolution of the 22<sup>nd<\/sup> of February 2024, the TEAC was required to analyse the deductibility of remuneration received by members of the board of executive directors. After echoing the precedent of the Supreme Court and recognising the overturning of the \u201clink theory\u201d, the TEAC confirmed the deductibility of remuneration received by said top executives, given that, in the particular case under scrutiny, the remuneration was duly accounted for and in consideration of services effectively rendered.<\/p>\n<p style=\"font-weight: 400; text-align: justify;\">Nevertheless, the TEAC considered that, in those cases where the same person receives remuneration as both director and top executive, and said remuneration could be broken down into the individual roles which it compensates, then the remuneration received in one\u2019s capacity as director could be deemed non-deductible if the commercial requirements regarding the remuneration of directors are not met. This would not affect the remuneration received as top executive, which would indeed remain tax deductible.<\/p>\n<p style=\"font-weight: 400; text-align: justify;\">Subsequently, the TEAC issued a new resolution on the 27<sup>th<\/sup> of May 2024, in which the tribunal established that the judgement put forward in its previous resolution of the 22<sup>nd<\/sup> of February 2024 had remained overturned by the ruling of the Supreme Court of the 13<sup>th<\/sup> of March 2024. As a result, the TEAC resolved that, even if it were possible to determine which payments were those received in one\u2019s capacity as director (commercial relationship) and those in one\u2019s capacity as executive (employment relationship), the absence of a provision in the company by-laws does not imply that said remuneration received in one\u2019s capacity as director is not tax deductible.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"font-weight: 400; text-align: justify;\">Joan Llu\u00eds Rubio<\/p>\n<p style=\"font-weight: 400; text-align: justify;\">Vil\u00e1 Abogados<\/p>\n<p>&nbsp;<\/p>\n<p style=\"font-weight: 400; text-align: justify;\">For more information, please contact:<\/p>\n<p style=\"font-weight: 400; text-align: justify;\"><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"mailto:va@vila.es\">va@vila.es<\/a><\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"font-weight: 400; text-align: justify;\">19<sup>th<\/sup> of July 2024<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ES|EN|\u65e5\u672c\u8a9e|DE In our articles of the 22nd of September 2023 and the 8th of March 2024, we analysed the Supreme Court\u2019s change of approach in relation to the issue of the deductibility of remuneration received by company directors, and the application of the so-called \u201clink theory\u201d (teor\u00eda del v\u00ednculo). The Supreme Court, contrary to what  [&#8230;]<\/p>\n","protected":false},"author":4,"featured_media":4734,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73],"tags":[],"class_list":["post-13590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>deductibility of the remuneration of company directors III - Vil\u00e1 Abogados<\/title>\n<meta name=\"description\" content=\"We comment upon a recent judgment regarding the deductibility of the remuneration of company directors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"deductibility of the remuneration of company directors III - Vil\u00e1 Abogados\" \/>\n<meta property=\"og:description\" content=\"We comment upon a recent judgment regarding the deductibility of the remuneration of company directors.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/\" \/>\n<meta property=\"og:site_name\" content=\"Vil\u00e1 Abogados\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-19T08:30:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-21T08:51:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/vila.es\/wp-content\/uploads\/2020\/07\/societario.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"669\" \/>\n\t<meta property=\"og:image:height\" content=\"272\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Vil\u00e1 Abogados\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Vil\u00e1 Abogados\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/\"},\"author\":{\"name\":\"Vil\u00e1 Abogados\",\"@id\":\"https:\/\/vila.es\/en\/#\/schema\/person\/1338568a83d16fbfd6073c8cc4834904\"},\"headline\":\"DEDUCTIBILITY OF THE REMUNERATION OF COMPANY DIRECTORS III\",\"datePublished\":\"2024-07-19T08:30:43+00:00\",\"dateModified\":\"2024-10-21T08:51:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/\"},\"wordCount\":547,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/vila.es\/wp-content\/uploads\/2020\/07\/societario.jpg\",\"articleSection\":[\"Corporate\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/\",\"url\":\"https:\/\/vila.es\/en\/corporate\/deductibility-of-the-remuneration-of-company-directors-iii\/\",\"name\":\"deductibility of the remuneration of company directors III - 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