Modification of the limitation on the deductibility of financial expenses

Effective for tax periods beginning on or after January 1, 2024, the Fifth Final Provision of Law 13/2023, of May 24, modifies article 16 of the LIS with the aim of finalising its adaptation to the Directive (EU) 2016/1164 of the Council of 12 July 2016.

For these purposes, the following new features are established:

• Article 16.1 of the LIS is modified to exclude of the determination of operating profit income, expenses or revenues that have not been included in the taxable base of this Tax.

• Article 16.6 of the LIS is modified to exclude from non-application of the limitation provided for in said article to the mortgage securitization funds, regulated by Law 19/1992, of July 7, and the asset securitization funds referred to in Additional Provision Five.2 of Law 3/1994, of April 14.

You can consult the specifics of this limitation in the Chapter 5 of this Practical Manual.