{"id":24852,"date":"2019-11-11T07:30:17","date_gmt":"2019-11-11T05:30:17","guid":{"rendered":"https:\/\/www.edenred.es\/blog\/?p=24852"},"modified":"2025-02-10T15:03:34","modified_gmt":"2025-02-10T14:03:34","slug":"gastos-representacion-definicion-y-deducir","status":"publish","type":"post","link":"https:\/\/www.edenred.es\/en\/blog\/gastos-representacion-definicion-y-deducir\/","title":{"rendered":"Representation expenses: definition and when they can be deducted"},"content":{"rendered":"

Representation expenses are those arising from the professional activity of employees when they are required to to carry out the representation of the company<\/strong>, for example, to a customer or a supplier. These costs are often closely related to travel costs or travel expenses, although they are broadly different costs. <\/p>\n\n\n\n\n\n\n\n

Definition of entertainment expenses<\/h2>\n\n\n\n

Representation expenses are those expenses expenditure associated with the activity of employees<\/strong> and which derive from the action of representing the company in a specific place or activity<\/strong>. For example, expenses arising from having to invite a customer to lunch, expenses arising from a meeting, or expenses arising from a gift to customers or suppliers are considered to be entertainment expenses. <\/p>\n\n\n\n

These are expenditures that are usually linked to travel or travel expenses, as they are<\/strong>, In many cases, these expenses are incurred during a journey. However, it is important to distinguish between them, as they are considered by the law as differentiated costs<\/strong> and with their own characteristics. Furthermore, it should be borne in mind that entertainment expenses are expenses which, in many cases, are deductible. Although it must be considered that deductible entertainment expenses may not exceed 1% of the company's net income<\/strong>, For this reason, it is important to differentiate them correctly from travel expenses. <\/p>\n\n\n\n

When can such expenses be deducted?<\/h2>\n\n\n\n

The Corporate Income Tax Act<\/strong> establishes that entertainment expenses shall be understood as those expenses of the company derived to generate income for the company. This very generic definition does not narrow down very much which expenses can be considered as such, so that there are six categories that are usually associated with entertainment expenses, which makes it easier to identify them:<\/p>\n\n\n\n