4.2.27 Key 01002 non-deductible expenses because they are considered remuneration of own funds (Art. 15 a) LIS)

As established in article 15 a) of the LIS expenses that represent a return on equity will not be tax deductible.

For these purposes, the remuneration of equity will be considered to be that corresponding to securities representing the capital or equity of entities, regardless of their accounting consideration.

Likewise, the remuneration of equity will be considered to be the corresponding remuneration of participating loans granted by entities that form part of the same group of companies according to the criteria established in article 42 of the Commercial Code, regardless of the residence and the obligation to prepare consolidated annual accounts.

Regarding participating loans, the seventeenth transitional provision of the LIS establishes that the provisions of article 15.a) of the LIS will not apply to participating loans granted prior to June 20, 2014.

Therefore, in the tax period in which these expenses considered non-deductible are recorded, an adjustment must be made to the accounting result in key [01002] of increases.