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Form 100. Personal Income Tax Declaration 2021

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.

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 one 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.