Completion of the table "Limiting the deductibility of financial expenses" (page 20 of Form 200)

In addition to making the corresponding adjustments for the application of the limitation on the deductibility of financial expenses, taxpayers must complete the three sections of this table on page 20 of Form 200 in the manner explained below.

1. Limitation on the deductibility of financial expenses. Art. 16 LIS (excluding those referred to in art. 15 g), h) and 15 bis LIS)

Boxes [01240] to [01259] of this section detail the different concepts classified in letters a) to an) that the entity must complete in application of the different rules established in article 16 of the LIS on the limitation on the deductibility of financial expenses.

All these concepts, which in certain cases involve performing arithmetic operations, are divided in this section into two blocks:

• Limit articles 16.5 and/or 83 LIS

Entities that apply the additional limit established in articles 16.5 and/or 83 of the LIS to the deductibility of financial expenses derived from debts intended for the acquisition of shares in the capital or equity of any type of entity, must complete boxes [01240] to [01244] of this block.

• Limit articles 16.1 and 16.2 LIS

Entities that apply the limit established in sections 1 and 2 of article 16 of the LIS to the deductibility of the rest of the net financial expenses other than those included in the previous block, must complete boxes [01245] to [01259] of this block, taking into account the following aspects:

• As for the box [01248], if the financial income of the tax period derived from the transfer of equity (box [01247]) is higher than the financial expenses of the tax period excluding those referred to in letters g) and h) of article 15 and article 15 bis of the LIS, the financial expenses of the tax period not affected by article 16.5 and 83 of the LIS, the financial expenses of the tax period derived from debts for the acquisition of shares affected by articles 16.5 and 83 of the LIS and the net financial expenses of the period not deductible by application of the limit of articles 16.5 and 83 of the LIS (boxes [01246], [01245], [01240] and [01243], respectively), the amount to be entered in box [01248] is zero.

• In the box [01249] The 30 percent limit on the operating profit composed of the sum of boxes [01250] to [01254] and the reduction in box [02368] is automatically calculated.

• In the box [01255] Where applicable, the limit of the operating profit not applied in the previous five years will be recorded, as established in article 16.2 of the LIS.

  Keep in mind:

  This box should only be completed in the tax period in which the net financial expenses for that period (box [01248]) are greater than the amount entered in box [01249].

• In the box [01256] the amount of deductible net expenses for the tax period will be collected.

• The boxes [01258] and [01259] They will be completed in the event that there are net financial expenses pending deduction, whether or not affected by articles 16.5 and/or 83 of the LIS.

• As novelty, a new one has been introduced box [02369] in which the total limit on the deduction of net financial expenses must be recorded. For these purposes, it should be noted that, in any case, 1 million euros will be recorded if the limit on the deduction of net financial expenses recorded in box [01249] plus the additional limit recorded in box [01255] is less than 1 million euros.

  If the entity's tax period were to last less than a year, the amount of this limitation would be the result of multiplying 1 million euros by the proportion between the duration of the tax period and the year.

  For correct completion of the box [02369], depending on the amount of net financial expenses for the tax period and the resulting limits, the following assumptions will be taken into account:

• If the net financial expenses for the period (boxes [01248] + [01258] + [01259]) exceed the limit set in box [01249] and said limit is greater than 1 million euros, the amount to be entered in box [02369] will be the sum of boxes [01249] and [01255].

• If the net financial expenses for the period (boxes [01248] + [01258] + [01259]) exceed the limit set in box [01249] and this limit is less than or equal to 1 million euros, the highest of the following amounts shall be entered in box [02369]:

  • box [01249] + box [01255]

  • 1 million euros

• If the net financial expenses for the period (boxes [01248] + [01258] + [01259]) are less than or equal to the limit set in box [01249] and this limit is greater than 1 million euros, the amount in box [01249] shall be entered in box [02369].

• If the net financial expenses for the period (boxes [01248] + [01258] + [01259]) are less than or equal to the limit set in box [01249] and this limit is less than or equal to 1 million euros, 1 million euros shall be entered in box [02369].

2. Limitation on the deductibility of financial expenses. Financial expenses pending deduction

When the entity has yet to deduct net financial expenses from previous years for having exceeded the limit of 30 percent on operating profit in the terms established in article 16.1 of the LIS, you must complete this section as follows:

• In column "Pending application at the beginning of the period. By limit 16.5 and 83 LIS», financial expenses arising from debts intended for the acquisition of shares in the capital or equity of any type of entities generated in the tax periods corresponding to 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023 respectively, and which at the beginning of the tax period subject to declaration, are pending deduction by application of the limitation regulated in articles 16.5 and 83 of the LIS.

  The rows corresponding to the years 2012, 2013, 2014 and 2024(**) of generation of financial expenses pending application will remain closed for the tax period.

• In column "Pending application at the beginning of the period. Rest", the entity must include the net financial expenses generated in the tax periods 2012 to 2023, and which at the beginning of the tax period subject to declaration are pending deduction by applying the limit established in article 16.1 of the LIS; as well as financial expenses derived from debts intended for the acquisition of shares in the capital or equity of any type of entities generated in said periods that, complying with the limit established in articles 16.5 and 83 of the LIS, were not deductible in previous tax periods due to the application of the limit provided for in article 16.1 of said regulation.

  The «row 2024(**)» generation of pending financial expenses will remain closed for the 2024 tax period, so it will not need to be completed.

• In the column "Applied in this settlement", the entity must record the amount of the financial expenses generated in the tax periods 2012 to 2023 pending deduction, included in the column "Pending application at the beginning of the period", applied in the tax period subject to declaration.

• In column "Pending application in future periods. By limit 16.5 and 83 LIS», the entity will record the financial expenses pending application in future tax periods generated, in accordance with the provisions above, in the tax periods 2015 to 2023, respectively.

  The rows corresponding to the 2012, 2013, and 2014 financial expenses will remain closed for the 2024 tax period and therefore will not need to be completed.

• In column "Pending application in future periods. Rest", the net financial expenses pending deduction in future tax periods, which have not been deducted in the tax periods 2012 to 2023 by application of the limit established in article 16.1 of the LIS, will be included, as well as the financial expenses derived from debts destined to the acquisition of participations in the capital or equity of any type of entities, which complying with the limit of articles 16.5 and 83 of the LIS, are pending deduction by application of the limit established in article 16.1 of said rule.

3. Pending addition due to unapplied operating profit limit

The amounts to be entered in this section will be those that in each and every case correspond to the difference between the limit established in section 1 of article 16 of the LIS and the net financial expenses, referred to in paragraph 2 of that article and in accordance with the provisions of this last paragraph:

• In column "Amount generated. Pending application at the beginning of the period», the entity will record the amount generated in the tax periods 2019 to 2023, which is pending application at the beginning of the tax period subject to declaration.

• In column "Applied in this settlement" , the part of the amounts recorded in the previous column "Amount generated" must be included. Pending application at the beginning of the period" corresponding to the tax periods 2019 to 2023, which is applied in the tax period subject to declaration.

• In the column "Pending application in future periods", the entity will record the positive difference between the amounts relating to the tax periods 2020 to 2022, which have been recorded in the columns "Amount generated. “Pending application at beginning of period” and “Applied in this settlement”. The resulting amount can be applied in future tax periods.

  The row in this column corresponding to the 2019 fiscal year for generating the amounts pending addition due to the unapplied operating profit limit that remain pending for application in future periods will remain closed for the 2024 tax period, so they do not need to be completed.