Non-deductible expenses due to being considered payment from shareholders’ equity

Article 15 a) of the LIS establishes that expenses representing a return on equity will not be tax deductible.

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

Likewise, the remuneration of equity will be considered to be the corresponding 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 residence and the obligation to prepare consolidated annual accounts.

Filling in form 200

In application of the provisions of this precept, the taxpayer must make, in the tax period in which these expenses considered non-deductible are recorded, a positive adjustment to the accounting result in box [01002] "Non-deductible expenses because they are considered remuneration of own funds (art. 15 a) LIS)" on page 12 of form 200.