Practical examples
Example 1:
How to apply net financial expenses from previous years
Entity "A" presents the following data in the tax period:
- Operating Profit (OP): €100 million
- Financial expenses (GF):
According to article 16.1 of the LIS , the entity can deduct net financial expenses up to a limit of 30 percent of the operating profit for the year; In any case, the net financial expenses of the tax period amounting to 1 million euros are deductible.
Maximum limit:
Year 0:
Year 1:
Year 2:
Millions € | Financial expenses net | Limit | Financial expenses net deductible | Limit exercises next | Financial expenses pending |
---|---|---|---|---|---|
Year 0 | 80 | 30 | 30 | --- | 50 |
Year 1 | 20 | 30 | 20 + 10 | --- | 40 |
Year 2 | 40 | 30 | 30 | --- | 40 + 10 |
Example 2:
How to add unused operating profit to future years
Entity "B" presents the following data in the tax period:
- Operating Profit (OP): €100 million
- Financial expenses (GF):
Maximum limit:
Year 0:
Year 1:
Year 2:
Millions € | Financial expenses net | Limit | Financial expenses net deductible | Limit exercises next | Financial expenses pending |
---|---|---|---|---|---|
Year 0 | 20 | 30 | 20 | 10 | --- |
Year 1 | 10 | 30 | 10 | 20 + 10 | --- |
Year 2 | 60 | 30 + 30 | 60 | --- | --- |
Example 3:
How to apply the 1 million euro limit
Entity “C” presents the following data in the tax period:
- Annual Operating Profit (OP) for each tax period: 2 million €
- Financial expenses (GF):
Maximum limit:
Year 0:
Year 1:
Year 2:
Millions € | Financial expenses net | Limit | Financial expenses net deductible | Limit exercises next | Financial expenses pending |
---|---|---|---|---|---|
Year 0 | 0.8 | 1 | 0.8 | --- | --- |
Year 1 | 1.1 | 1 | 1 | --- | 0.1 |
Year 2 | 0.8 | 1 | 0.8 + 0.1 | --- | --- |