Skip to main content
Form 100. Personal Income Tax Return 2021

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.

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.

However, when the duration of the activity is less than a year, the deductible amount will be the result of multiplying one million euros by the proportion between the duration of the activity in the tax period and the year.