Normal mode

Regulations: Art. 14 of the LIS

The following expenses will be deductible for this concept:

• Those corresponding to environmental actions when they correspond to a plan formulated by the taxpayer and accepted by the Tax Administration.
• The expenses inherent to the risks derived from the repair and revision guarantees will be deductible up to the amount necessary to determine a balance of the provision not greater than the result of applying to sales with guarantees alive at the conclusion of the tax period the percentage determined by the proportion in which the expenses incurred to meet the guarantees made in the tax period and in the two previous periods would have been found in relation to the sales with guarantees made in said tax periods. 

This same rule will apply to provisions to cover accessory expenses for sales returns.

Newly created entities may also deduct the provisions mentioned above for risks derived from repair and revision guarantees, by setting the percentage referred to therein, with respect to the expenses and sales made in the tax periods that have elapsed.

The following expenses will not be deductible for the concept of provisions:

• Expenses for provisions and internal funds to cover contingencies identical or analogous to those that are the subject of the consolidated text of the Law on the Regulation of Pension Plans and Funds, approved by Royal Legislative Decree 1/2002, of November 29 (Art. 14.1 LIS).

  These expenses will be tax deductible in the tax period in which the benefits are paid. 

• Expenses related to long-term remuneration to personnel through defined contribution or defined benefit systems (Art. 14.2 LIS ).

  However, the contributions of the promoters of pension plans regulated in the consolidated text of the Law on the Regulation of Pension Plans and Funds will be deductible, as well as those made to corporate social security plans. Contributions to cover contingencies similar to those of pension plans will also be deductible. See the comment on these contributions in this same Chapter under " Personnel expenses "

• The following expenses associated with provisions
  1. Those derived from implicit or tacit obligations.
  2. Those concerning the costs of compliance with contracts that exceed the economic benefits expected to be received from them.
  3. Those derived from restructuring, except if they refer to legal or contractual obligations and not merely tacit ones.
  4. Those related to the risk of sales returns.
  5. Personnel payments that correspond to payments based on equity instruments, used as a remuneration formula for employees, and are paid in cash.

Note: Expenses that, in accordance with the two previous sections, would not have been tax deductible, will be integrated into the tax base of the tax period in which the provision is applied or the expense is used for its purpose.