Last day October 20 in the Official Gazette published Resolution of October 7, 2010 the Institute of Accounting and Auditing, published by the Technical Standards on Auditing "fair value."
The term "fair value" has been introduced by current accounting regulations, and the recent judgments of the High Court and TEAC have considered this "limit" based on remuneration of director of a company and its tax impact.
It is therefore considered that the remuneration of directors should be adjusted to market value, ie the fair value. TEAC's argument and the High Court placed "fair value" around 1 percent of sales of the company. The excess of this amount should be treated as a donation from the company and therefore not deductible as an expense in corporate tax and not computed as income from work in the Income Tax of Natural Persons. Juan Hidalgo
BAA Partner
www.BarcelonaAdvocats.com Barcelona Bar
Jhidalgo@BarcelonaAdvocats.com
(+34) 93.488.10.40
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