4.2.27 Code 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 remuneration of own funds will not be tax deductible.

For these purposes, remuneration from own funds will be considered to be that corresponding to values representing the capital or own funds of entities, regardless of their accounting consideration.

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

Regarding participatory loans, the seventeenth transitional provision of the LIS establishes that the provisions of article 15.a) of the LIS will not apply to participatory 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 the increases key [01002].