Deductible financial expenses

Net financial expenses will be deductible with the limit of 30 percent of the operating profit for the year.

For these purposes, the following must be taken into account:

• net financial expenses will be understood as the excess of financial expenses with respect to the income derived from the transfer to third parties of own capital accrued in the tax period, excluding those expenses referred to in the letters g), h) and j) of article 15 of the LIS .

• The operating profit will be determined from the operating result of the profit and loss account for the year determined in accordance with the Commercial Code and other development accounting regulations:

  • Eliminating the amortization of fixed assets, the allocation of subsidies for non-financial fixed assets and others, the impairment and results from disposals of fixed assets, and

  • Adding the financial income from participations in equity instruments, provided that they correspond to dividends or participation in profits of entities in which, either the percentage of participation, direct or indirect, is at least less 5 percent, or the acquisition value of the participation is greater than 20 million euros, except that said participations have been acquired with debts whose financial expenses are not deductible by application of article 15 h) of the LIS.