Tax Implications of Donating Concert Tickets to Non-Profit Entities

• The General Directorate of Taxes issued a binding consultation on June 24, 2024, regarding the tax implications of donating concert tickets by a company to nonprofit entities at no cost
• Corporate Income Tax
• The free provision of tickets to nonprofit entities is considered a gift and is not a tax-deductible expense
• The donation does not qualify for the deduction under Article 17 of Law 49/2002 as it is not considered a donation of goods or rights but a provision of services which is not covered by the law
• VAT
• The donation of tickets is treated as a taxable and non-exempt operation under VAT as it is considered a provision of services for consideration even though it is done without compensation

Source: audiconsultores-etlglobal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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