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6.5.5. Special Remunerations (E.g. Bonuses and Directors’ Fees)

Salaries and perks are deductible, as long as the employer (i) has withheld the applicable income tax; and (ii) has paid all contributions to the social security system ( aportesparafiscales).

The sums paid to independent workers are deductible, as long as the employer (i) verifies that the contractor has paid all the social security contributions applicable to the respective contract and (ii) withholds the applicable income tax on the contractor’s income.

They following expenses are also deductible, provided they fulfil all the requirements stipulated by article 107 of the Tax Code:

  • customary gifts to employees
  • mandatory and voluntary insurance premiums,
  • social security contributions
  • director’s fees