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.
The support programme for this event will run from 1 January 2009 to 31 December 2010.
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:
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:
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:
For the application of these deductions, Act 49/2002 requires the following:
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.
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.
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.
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.