Council of St James

Tax benefits

The Xacobeo 2010 Holy Year has been declared an event of exceptional public interest for the purposes of the application of tax benefits by the 51st Additional Ruling of the State Budget Act 2/2008, of 23 December for the 2009 budget. The tax allowances for the programme are the maximum allowances established in Section 27.3, Law 49/2002.

Programme term

The support programme for this event will run from 1 January 2009 to 31 December 2010.

Body responsible for certifying expenditure

The Council of St. James shall be the body responsible for issuing certificates justifying that the expenditure eligible for deductions has been carried out in accordance with the programme's plans and goals.

The Secretariat of the Council of St. James has prepared a procedures manual for recognition of the fiscal benefits applicable to Xacobeo 2010, including:

  • Information relating to fiscal benefits, the requirements for obtaining them, how to request accreditative certification from the Council of St. James, the obligations inherent in the application of the priority tax scheme for sponsors and how to request previous recognition from the Tax Office.
  • The plans and goals of the programme.
  • The strategic lines of the media plan.
  • Certification request forms.
  • Applicable regulations.

DOWNLOAD PROCEDURES MANUAL FOR RECOGNITION OF TAX BENEFITS APPLICABLE TO XACOBEO 2010

Applicable tax benefits

A) Deduction of the quota in Company Tax, in Individual Income Tax, for taxpayers in the direct estimate tax category, or Non-Resident Income Tax, operating in Spain through a permanent establishment, consisting of 15 per cent of the advertising and publicity costs over several years that directly serve to promote the Xacobeo 2010 Holy year:

a) Consisting of:

  1. The production and publishing of graphics or audiovisual promotional or informative material, consisting of brochures, posters, guides, videos, audiovisuals and other objects, as long as they are freely distributed and advertise the event.
  2. The installation or assembly of specific stands at national and international trade fairs, promoting the tourism aspect of the event.
  3. The creation of publicity campaigns for the event, both in Spain and abroad.
  4. The donation of free advertising space in which to insert, by the consortium or corresponding administrative body, commercials dedicated to promoting the event.

b) Directly serving the promotion of the event because the content favours the dissemination thereof.

The amount of this deduction cannot exceed 90 percent of donations to the consortium, publicly owned bodies or bodies specified in Article 2 of Act 49/2002, in charge of creating programmes and activities relating to the event. If this deduction is applied, these donations will not be eligible for any of the tax incentives set out in this Act.

When the content of the advertising medium refers essentially to the dissemination of the event, the basis of the deduction will be the total amount spent. Otherwise the basis of the deduction will be 25 percent of the amount spent.

B) Application of the priority patronage system to the programmes and activities relating to the Xacobeo 2010.

Payers of Income Tax, Corporate Tax and Non-Resident Income Tax will have a right to the following deductions for the donations and contributions they make to the consortium, publicly owned bodies and bodies specified in Article 2 of Act 49/2002, in charge of creating programmes and activities relating to the event:

  • 30% off Individual Income Tax.
  • 30% off Non-Resident Income Tax.
  • 40% off Company Tax for the donations and contributions made.

For the application of these deductions, Act 49/2002 requires the following:

  • Donations will be applied to the Objectives and plans approved by the Council of St. James.
  • This execution will be carried out by the consortium, publicly owned bodies or bodies specified in Article 2 of Act 49/20022010 (mainly foundations and associations declared as being of public interest), in charge of creating programmes and activities relating to Xacobeo 2010.
  • Bodies or institutions benefiting from priority patronage must obtain a certificate from the Council of St. James stating that the activity falls within their plans and programmes.
  • Bodies or institutions benefiting from priority patronage will in turn issue certificates to donors.

C) Payment of 95 percent of the Business Tax quotas for artistic, cultural, scientific or sports activities during the celebration of Xacobeo 2010, within the framework of the objectives and plans of the programme established by the Council of St. James.

D) Payment of 95 percent of local taxes and rates incurred by the operations relating exclusively to the objectives of the cited programmes, according to the certification of the Council of St. James; not including Property Tax, and Motor Vehicle Tax.

All people and bodies accrediting with a certificate issued by the Council of St. James that the expense with right to deduction was paid in accordance with the plans and objectives established by the Council of St. James will have the right to benefit from these deductions.

Official logo of the event for the application of tax benefits

The Plenary of the Council of St. James, in its meeting of 17 June 2009 in Madrid, adopted the official logo of the event for tax benefit purposes.

Xacobeo 2010 Logo

The Strategic Lines of the Media Plan are attached, defining the advertising and promotional activity of Xacobeo 2010 which may benefit from tax relief. The document distinguishes media actions considered essential and non-essential, which have a smaller reduction.

Applicable legislation

Support programmes for events of exceptional public interest are defined in Section 27, Law 49/2002, dated 23 December, on the tax scheme of non-profit entities and tax incentives for patronage.

The procedure to apply the tax allowances, common to all events, is established in Chapter III, Real Decree 1270/2003, dated 10 October, which approves the Regulations for the application of the tax scheme of non-profit entities and tax incentives for patronage.



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