Financial expenses

Delimitation of deductible or non-deductible financial expenses:

This includes all expenses arising from the use of external financial resources to finance the company's activities or its assets. Among others, the following are considered as such:

• 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.

On the other hand, the following are not considered deductible financial expenses:

• Those that entail a higher cost of acquiring heritage items.
• Those arising from the use of own capital.

Limitation on the deductibility of net financial expenses exceeding 1 million euros

Article 16 of the LIS establishes a limit of 30% of the operating profit of the year for the deductibility of "net financial expenses" whose amount exceeds 1 million euros.

Net financial expenses are understood to be the excess of financial expenses over 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 :

See also the Resolution of July 16, 2012, of the General Directorate of Taxes, in relation to the limitation on the deductibility of financial expenses in the Corporate Tax ( BOE of 17).

Up to this amount, that is, up to 1 million euros, net financial expenses will, in any case, be deductible.

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