Financial expenditure arising from debts with entities in the group

In accordance with the provisions of article 15 h) of the LIS , financial expenses incurred in the tax period, derived from debts with entities of the group according to the criteria established in article 42 of the Commercial Code, will not be deductible, regardless of residence and the obligation to prepare consolidated annual accounts, intended for the acquisition, from other entities of the group, of shares in the capital or equity of any type of entities, or for the realization of contributions in the capital or equity of other entities of the group, unless the taxpayer proves that there are valid economic reasons for carrying out such operations, such as cases of restructuring within the group, a direct consequence of an acquisition from third parties, or those cases in which there is authentic management of the acquired participating entities from Spanish territory.

Filling in form 200

For these purposes, in the tax period in which the aforementioned financial expenses considered non-deductible for tax purposes are recorded, a positive adjustment must be made to the accounting result in box [00508] "Financial expenses derived from debts with group entities (art. 15 h) LIS)" on page 12 of form 200.