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Form 100. Personal Income Tax Declaration 2019

Financial expenses

All expenses derived from the use of third-party financial resources to finance the company's activities or its asset elements are included. Among others:

  • Expenses for discounting bills and financing the company's operating credits.
  • Surcharges for postponement of payment of debts corresponding to the activity.
  • Interest corresponding to deferrals and installments of tax debts, provided they are directly related to the activity and correspond to the year.

Limitation on the deductibility of net financial expenses (art. 16 Law I. Companies)

Net financial expenses are understood to be the excess of financial expenses with respect to financial income, that is, the income derived from the transfer to third parties of own capital accrued in the tax period, excluding the expenses referred to in letters g), h ) and j) of article 15 LIS

Net financial expenses are deductible up to a limit of 30% of the operating profit for the year. In any case, net financial expenses for the tax period amounting to 1 million euros are deductible.