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Form 100. Personal Income Tax Return 2019

Financial expenses

This includes all expenses arising from the use of third-party financial resources to finance the company's activities or its assets. Among others:

  • Expenses for discounting effects and financing of the company's operating credits.
  • Surcharges for deferral of payment of debts corresponding to the activity.
  • Interest corresponding to deferrals and fractioning of tax debts, provided that they are directly related to the activity and correspond to the fiscal year.

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

Net financial expenses are understood as the excess of financial expenses with respect to financial income, that is, 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.