Deductibility of the remuneration of administrators and directors

Deductibility of the remuneration of administrators and directors

The National Court has recently admitted in two rulings, dated October 3 and September 21, 2022, the deductibility of the remuneration of administrators and directors, even when commercial regulations are not strictly complied with, if it is proven that the partners are connoisseurs of that remunerated nature.

Faced with the position of the Administration, which has been denying for years the deductibility of said remuneration if the requirements demanded by commercial regulations are not met (among others, it is required, in the case of unlisted companies, that the remuneration system be established in the social statutes and that the Board and Council approve the maximum of said remuneration), the National Court has made this criterion more flexible on the basis of the prohibition of abuse of formality.

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